Expert teaches parents how to invest their children’s money safely

This week, a topic gained momentum on social media: influencer Viih Tube revealed that her daughter, little Lua, just six months old, has already made her first million on her account.

The money raised derives from your contribution to famous brand campaigns. “I’m already saving all her money [Lua], of everything she does. She has an account. It’s still savings, because it can’t open on its own. When she has discernment, she will know that there is that money there”, she said during her participation in the “PodPah” podcast.

From this perspective, the specialist in personal finance and investments, Renan Diego explains how parents can safely invest their children’s money.

“Most parents leave money in their children’s savings account, because it is the “place” where they learned to invest or save money. The name “savings” already refers to this. Saving is saving money. Investing is multiplying money. So savings nowadays are not an investment, even in 2019, 2020 and 2021, they lost to inflation and recovered last year and this year, because the interest rate is very high. Therefore, what I recommend to parents is to invest”, highlights Renan, head of the digital school Produtividade Financeira.

A CNN Renan listed some tips for parents who wish to opt for investment, highlighting the associated benefits and the best practices for doing so responsibly.

1st tip:

For Renan, a key point is to invest in places where you can go out at any time and that provide security.

• “Because when you invest for your children, it’s normal to be afraid. So the first step for parents who have money in savings and are insecure is to invest in Tesouro Direto. Tesouro Direto is the safest investment in our country. You can put it in the Selic Treasury”, he says.

The Selic Treasury, the expert explains, is the same as savings – you can withdraw it at any time – but with one difference: it yields more and is safer, because the guarantee you have when investing in the Treasury Direct is the National Treasury itself.

• “Basically it is the government’s guarantee, when I refer to the government it is not the party but Brazil as a nation. As for savings, the guarantee you have is from the FGC, which is the Credit Guarantee Fund that guarantees up to 250 thousand reais. If parents want to put the money in some CDBs, which have daily liquidity (you can withdraw at any time) that is also interesting. You should only pay attention to one point: this investment must yield more than 100% of the CDI. This can be done in digital banks, brokerages and physical banks. It’s a good possibility for those who are migrating from savings to start investing for real and losing their fear, however, if this father is going to invest, for example, for his children’s college education or for exchange, something that is too much of a horizon of five years, then a good option is the IPCA+ Treasury.”, says Renan.

2nd tip:

The next tip is for parents who don’t know anything about investments, but want to save money for their children’s college education, for example.

• “Nowadays there is the Educa + Treasury, which parents invest monthly and it is even possible to know how much income they will generate when their child turns 18. Tesouro Direto will pay income for the child for five years, which is the average period of college,” she says.

3rd tip:

For parents who already invest and want to continue in the long term, in addition to all the investments already mentioned, a good option is also the Stock Exchange.

• “Shares over time tend to grow, appreciate in value and pay dividends. Even with an even better return than other Treasury bonds, CDBs or fixed income. Long-term shares and real estate funds for your children are also an excellent option! The big tip is to diversify your investments, because diversification in the world of investments is the secret to success”, explains the expert and educator.