The government’s project assumes that the money received under the 500+ program is to improve the living conditions of Polish children. Money, of course, is given to parents or legal guardians, because minors cannot collect it themselves. They should allocate them for purposes related to the education of children, their food, rest and broadly understood needs. It can be different, because the funds from the 500+ program go to the hands of people from pathological environments or simply inefficient socially and educationally. It often turns out that despite this help, children do not feel any benefits. But in many cases the situation is quite different. Where the parents’ income is sufficient and additional funds are not really needed, the money from the 500+ program can be used to build capital that will make it easier for a child to enter adult life.
Capital for a new way of life
It has been calculated that by postponing money from the government’s program from the very birth of a child, it is possible to create capital of around 150,000 until the child reaches the age of majority. USD to start your adult life. Simply put, the base amount is much lower, as it is 108,000. dollars. Not only that, a family that has a sufficient budget and can put aside money, probably has an income of more than 800 dollars per person, so they will get 500 dollars only for their second child. In this situation, this amount should be divided fairly. Assuming that there are two children in such a family, they should have a starting sum of 54,000. dollars.
Of course, this is also a solid amount that can be used, for example, to study and maintain during this education or to invest in your own company, but you need to take care of that money.
How to take care of your children’s financial security?
Assuming that the 500+ program will last for many years, and parents will maintain their income at a decent level all the time, money for the start for a child can be put aside for the whole 18 years. However, this is a very long period and putting down is not enough. It is necessary to invest here. First of all, it would be worth a little to multiply the capital allocated for such an important purpose, and secondly, you need to protect this money from impairment. In the years when inflation is still rising, as it is now, money from the 500+ program will have less and less purchasing value. So for the accumulation of these savings to make sense, you need to decide on some investment method.
Of course, this is a responsible task, because it is really our children’s money, we only manage it when they are underage. Therefore, this task should be carried out as well as possible. This responsibility weighs on parents so much that they usually decide on stable and safe ways to increase savings, i.e. on term deposits. The problem is that the current interest rate on such deposits only allows you to defend capital against impairment, but you can’t count on profits. The only advantage here is the virtually negligible risk factor of losing part of the initial capital.
Some parents try to generate a slightly better financial result by paying money from the 500+ program to promotional short-term deposits, which from time to time appear in the offers of various banks. However, they are usually directed to new customers, so you have to constantly transfer funds to subsequent accounts. It is a bit arduous, but it has been calculated that by acting this way for 18 years, assuming that inflation will not increase, you can increase the capital of 108,000. PLN for 115 thousand dollars.
A better and more effective way is to buy government bonds
Especially those with a 10 and 12-year maturity. By buying such securities successively for regularly flowing money from the 500+ program, you can create a capital of approximately $152 thousand from the said base amount. Dollars after paying the input tax on the sale of bonds. Then for each of the two children there will be 54 thousand. and about 76 thousand dollars.