Lithuanian experts advise monthly investments to save 20,000 euros for child's 18th birthday

Parents looking to secure their child's financial future can aim to accumulate 20,000 euros by the time their child turns 18, according to financial experts. Kristina Ruseckienė, head of savings and investment services at SEB Bank, highlights that modern tools make investing for children's futures simpler than ever.

Automated investment solutions, such as investment robots and micro-investing services, enable parents to invest small, regular amounts while achieving broad diversification. Ruseckienė emphasizes the benefit of periodic investing, where a predetermined sum is automatically invested each month. This strategy helps smooth out the impact of stock market fluctuations, as investments are made during both rising and falling market periods.

"The longer the investment period, the more market fluctuations even out, as you invest during periods of both price increases and decreases," Ruseckienė explained. She advises that starting investments from a child's birth is most beneficial for long-term growth.

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The longer the investment period, the more market fluctuations even out, as you invest during periods of both price increases and decreases.

Personal finance consultant Laimis Jatautas cautions that there is no single best strategy, as it depends on individual risk tolerance, investment knowledge, initial capital, and market conditions. He suggests a diversified approach, potentially combining index ETFs, crowdfunding, and savings accounts, tailored to the parents' understanding and comfort level.

Jatautas notes that while an average annual return of 8-9% might be a reasonable expectation over eight years with a diversified strategy, past performance does not guarantee future results. He points out that the recent past has seen a particularly long economic growth cycle, making it potentially naive to expect similar returns in the next eight years.

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There is no single best strategy, as it depends on individual risk tolerance, investment knowledge, initial capital, and market conditions.