Tag Archives: return on investment

5 ways to teach your kids about investing

For many adults, investing is still a confusing pipedream that is rumored to lead to something called financial freedom. For those working outside of banking and finance, it may seem like those who invest are part of an exclusive elite club that have access to deals that are not available to the masses.

While this is of course not true, we recently thought that if adults still think this way then what about kids? By nature, kids are more open-minded and care free to the financial constraints of adult life (and they absolutely should be!). If you can reinforce the importance of investing and financial discipline from an early age, you will give them a valuable life skill which they most likely will not get from school.

Here’s our top 5 ways to teach your kids about investing:

1. Apps that help kids invest

With a variety of innovative apps available in the modern day, thankfully someone has created an app specifically for helping kids to learn to invest. BusyKid is an app that lets your child see the money they have earned from doing chores, manage their allowance and invest in to stocks. Investing can be intimidating for first-timers, but apps like BusyKid help simplify this experience so it becomes second nature to your children.

2. Create an investment account for them

Start making monthly deposits to an index linked fund or a P2P account which you plan to set aside and transfer ownership to them in the future. Over time and once they reach a mature age (Say their mid-teens), you can show this to them with a comparison of the total deposits you have made and how much interest you have earned for them with virtually no effort. Understanding the power of compound interest is the key to becoming an intelligent investor.

3. Compare 0% returns to your own returns

Do you give your kids pocket money every month? If you do, you can tell them how much their pocket money over the past few years could have been worth today if they had invested it. You can compare this with the performance of your own investments or for simplicity, at a rate of 10% per year in monetary terms or something better…

4. Speak their language

What’s the big thing they have wanted for a long time? Talking in terms of something visual or physical is much more receptive to kids than saying your money could have grown by X%. If they have been saving up for that new games console or bicycle and are still short of some money, you can help them understand that they could have been able to pay for it already if this money had been invested in the meantime.

5. Pay themselves first

If they are in their teens, maybe they even have a part time job at this point and you can help reinforce budgeting and paying themselves first for investing. If they have financial discipline from this age, they will carry this with them for the remainder of their lives and most likely be very thankful down the line when they retire 20 years earlier than their peers.

Tell them about the risks

It’s important to mention at this point, you should also inform your kids about the risks of investing and not putting all of their eggs in to one basket.

Source: www.bondora.com

How fast do you get your money back from renting an apartment in Europe – Top 5

Following the financial crisis and the decline in banks interests, more and more people have begun to buy real estates for investment purposes, relying on renting them and earning a higher return on the one obtained from a traditional bank deposit or other financial instruments. Read below what are the TOP 5 European cities where the purchase of an apartment for rent could bring the biggest gains.

The yield, or rental gain, is a measure of the attractiveness of a real estate investment. It shows what percentage of the amount used to buy the apartment you get each year from renting that property.
For example, if a person purchases an apartment with 200,000 euros and rents it with 833 euro / month (equivalent to 10,000 euro / year), that property generates a yield of 5% per year. As a result, that person will recover the money used to buy the apartment in 20 years (5 x 20 = 100%).

1. First place: Chisinau, Republic of Moldova

10% yield for a property (generally an apartment) with an average area of 120 sqm.
Time required to recover the purchase price: 10 years.

Some of the biggest real estate returns in Europe, but also in the world
The property market favorable to the owners

High taxes
Payments for property acquisition are made almost exclusively in cash
One of the poorest countries in Europe
Secessionist risks

2. Second place: Kiev, Ukraine

9.09% yield for a property with an average area of 120 sqm.
Time required to recover the purchase price: 11 years.

Low cost of transactions
Moderate tax on rental income
The property market favorable to the owners

Expensive properties reported on the country’s GDP
Corruption and risk of political instability
Vulnerability to international crises

3. 3rd place: Dublin, Ireland

7% yield for apartments.
Time required to recover the purchase price: 14 years and 3 months.

Moderate transaction costs
Strong market to rent for migrants
Strong and stable economy

Lower rents in recent years
Strong laws favorable to tenants

4. 4th place: Budapest, Hungary

6.42% yield for a property with an average area of 120 sqm.
Time required to recover the purchase price: 15 years and 7 months.

Proprietary laws
Higher yields in Budapest
Moderate and low transaction costs

Minor property restrictions
Moderate / high taxes on rental income

5. 5th Place: Bucharest, Romania

6.07% yield for a property with an average area of 120 sqm.
Time to recover the purchase price: 16 years and 6 months.

Moderate transaction costs
The property market favorable to the owners

Expensive properties reported on the country’s GDP


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