K&H: how much money can be collected from pocket money in ten years

By: Trademagazin Date: 2024. 01. 23. 10:22

With careful planning, we can make money our tool, instead of letting it rule over us. K&H Be careful, ready, money! in the first round of the financial competition, savings are given a prominent role, during the game young people can also learn how to set aside pocket money for long-term goals. The first – online – round of the game is already in full swing, the tasks can be submitted until January 26, 2024.

According to K&H experts, the most important thing is to define the goals: the budget for daily expenses must be separated from the money needed to achieve longer-term goals, the latter may include more expensive devices for children, such as a gamer computer, smartphone, electric bicycle or even a ticket to a summer festival .

Budgets and savings goals for families with children should be transparent and achievable. It is useful to combine its preparation with “family meetings”, where parents and children can discuss their common goals. Part of the preparation of the budget is the continuous review of the family’s financial situation and it must be adapted to the given life situation.
If the young person can save HUF 5,000 every month for ten years, they can accumulate more than HUF 730,000 during this period with a 4 percent return. The higher the amount that can be saved each month, the higher the final result will be. However, it is important that the interest and yield of savings and investments can change in the longer term. It is also important to clarify with young people that investments that are said to be riskier, such as shares, promise higher returns, compared to very safe, almost risk-free investments, which typically provide modest returns.