Tips For Women On Occasion Of World Savings Day 2019
The World Savings Day or International Saving Day takes place on October 30th every year and is looking back at a decades-long tradition. On occasion of this due date, generations of kids have been taking their saved pocket money to the bank depositing it at their savings book. The banks’ would hand out small gifts for them to encourage them to continue their saving aspirations.
If you’re keen to find out more on the history of International Saving Day, take a look at this blog post.
Maybe it’s due to that tradition that saving for women is still closely linked to paying in a savings account? We’d have to leave this issue to speculation. However, it’s a fact, that among women in Germany the savings book is the most popular savings product to date. And that’s against every expert’s recommendation.
How Women Save Money
Women save money just as they invest: preferably conservatively and safety-conscious. Every fifth German woman considers the savings book and the classic building loan contract an interesting savings product. And yet, especially the savings account has long not been worth the while anymore. Quite the contrary, really. Nils Petersen form the Stock Club Itzehoe (Itzehoer Aktienclub GbR) had this calculated carefully in 2015 already:
“Savings books’ interest rates that banks and savings bank offer are at around 0.05 percent. If you pay in 10,000 Euros, you’d receive about 5 Euros of interest per year. And if you consider the taxes, you’ll be left with 3.60 Euros that will actually be added to your savings book.”
Just a brief reminder: we’re talking 2015 here. By now, interest rates have continued to decline, while the inflation rate has increased. And even then the financial expert warned:
“By now, one must say, this entire concept borders upon the destruction of money. What people always forget is inflation. If one considers that factor, investing 10,000 Euros would lead to an annual loss of 90 Euros.”
Women are generally the more proficients savers, but unfortunately they tend to cling to outdated savings products. Women must at all costs take the idea of saving money a step further. For starters, it would be great, if they perceived World Savings Day as a sort of World Stock Day. And, if money saving for women would no longer be so radically separated from investing.
Saving For Women With Smart Investments
Saving money is a good thing. And yes, we, too, recommend to put at least three monthly salaries aside that you can access at anytime. Every Euro, however, that’s more, has no place in neither the regular bank account nor the instant access savings account or the savings book. Because in the best of cases, it sits idle there, in the worst of cases, it keeps loosing value.
Money saving for women must desperately be linked to the idea that there’s no shame in multiplying assets, while they’re saved up.
… and as women we do have a tendency to think negatively about money. If you’re looking for a way out, check out our article on how to remove money blocks.
Women are still rather timid in terms of investments. According to researches, less than 20 percent think that investment funds are an interesting savings or investment product. Stocks are considered an alternative by just little more than 10 percent of women, when it comes to saving money.
It seems like saving for women has nothing to do with the idea of investing. On the one hand, that’s surely due to the lack of transparency at the capital markets, on the other hand, women suffer from self-doubt and think they’re financially too uneducated to understand investments in the first place. And yet, there are some really great investment products that actually do fulfill the classic character of saving.
Accumulation Plans Make Saving For Women More Worthwhile Than Coin Banks
What’s the definition of saving for women? Well, often, the image of money saving for women is a very traditional one. The one of saving money in a coin box or, even worse, stocking. There’s a haptic experience to this type of money saving for women. At the end of the day, the can literally see, how much they’ve saved up. And this feeling mostly does not come up with investments — or might even be quite the opposite.
Women fear to have no control over their money. They are afraid to not being able to access their assets in case of need. They’re scared of slumps in prices and asset loss.
But modern accumulation plans actually meet women’s need for the traditional feel when saving money quite well. They can regularly pay in money, choose the rate themselves and adjust it at any point in time. In many cases, even pausing the payment is possible, and by accessing their online deposit, women can always observe, control, track, and overview their money’s performance.
At the same time, accumulation plans very much comply with women’s need for security. The cost average effect easily counterbalances losses, longer terms contribute their fair shares to almost exclude a complete loss of saved and payed-in money.
Are you ready to experience money saving for women off the beaten childhood tracks that haunt you to date? Do you want to leave the somewhat childish concept of saving for women behind and get a modern idea of how women save money?
Well, have a chat with our financial experts then. Book a first free assessment with FinMarie and let World Savings Day mark the dawn of a new era in saving for you. That’s saving for women 2.0!