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Parents who invest seize and their children - financial literacy comes into practice

2021-12-01

Since April on the crowdfunding platform, 'Profitus' minors have opportunity to invest in real estate. Since then 120 individuals up to 18 years old invested, they raised 25,000 euros.

'Usually, it's the children of our clients or further family of individuals who invest. From communication with our clients, we distinguished two key reasons for investing. Some invest their saved pocket money, indeed, with the approval of their children. Other parents create an account on Profitus as an alternative to a bank account. Their aim is long-term savings for their children's future - for instance, children's studies. Since interest at the banks is minimal or zero, people look for alternatives how to protect their savings from inflation - says chief marketing executive of 'Profitus', Monika Lencickaite.

Parents who invest their children's savings state that they desire to introduce their children to investment, and to do so by investing their savings is quite effective. Children are curious about how their savings progress to grow, by choosing different RE projects they can assess different risks, rates of interest.

'On our platform parents create their children's accounts, there are clear safety requirements, the process itself is homogenous to opening a bank account. If parents want their children to invest independently, i.e. choose objects in which to invest, how risky it is and where to distribute money, parents have to sign a consent form' - clarifies 'Profitus' spokesperson.

Regarding taxes, Lithuania taxes only interest above 500 euros per year. To earn that much, you need to invest more than 6-7 thousand euros. Usually, one investment is between 100 and 500 euros and children's portfolios, usually, are the same size.

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