Which parent has not thought of putting a little money aside for their offspring? The objectives are multiple: to help him get started in life, provide him with a nest egg to acquire his main residence or even have a cushion for long and expensive studies… “Traditionally, the first account opened is a Livret A”, notes Alexandre Castagnon, deputy marketing and commercial communications director at Caisse d’Epargne Ile-de-France. For many years, l’Ecureuil has even carried out promotional campaigns directly in maternity wards!
This regulated savings product is rightly attractive: it is accessible from birth and can be kept without age limit. Savings are guaranteed and currently earn 3% without fees or taxes. “It’s quite simply one of the best investments at the moment,” believes Alexandre Castagnon. And when its ceiling of 22,950 euros is reached, it is possible to add other booklets specially dedicated to children. Please note, these are subject to the single flat-rate levy (PFU) of 30%. From the age of 12, the Youth booklet can take over.
The PEL rate is fixed
Another possibility is to turn to housing savings. “The housing savings plan (PEL) is a safe bet insofar as it benefits from a high ceiling of 61,200 euros and it allows you to prepare a contribution for the acquisition of the main residence”, underlines Alexandre Castagnon. Currently, however, its remuneration is less attractive than that of the Livret A: 2.25% for plans subscribed since January 1, 2024, from which the 30% PFU will have to be removed. “But the PEL rate is fixed once and for all and it allows you to set a date for the entire lifespan of the plan,” recalls the expert. This is not the case for Livret A, which could see its rate drop in the coming years.
Rather than multiplying the number of liquid savings products, households wishing to invest larger sums will have an interest in turning to life insurance. “There is no point waiting for the A booklet to be full to start making regular payments on a multi-support contract,” indicates Thais Castang, partner at L & A Finance. The latter will allow you to diversify your investments to obtain a better return. Indeed, children do not need this savings before – at the earliest – their majority, this leaves a significant time horizon to bet on risky supports. “The more we invest over the long term, the more we can expose ourselves to the markets,” continues Thais Castang. Without excess, however, because the Civil Code requires “prudent, diligent and wise care to be taken in the management of children’s property, in the sole interest of the minor”.
Life insurance: the security of the deputy pact
Life insurance has another advantage since it is possible to add an additional agreement, via a model provided by the insurer. “This contractual document makes it possible, for example, to provide that the child will not be able to withdraw the funds upon reaching the age of majority without the agreement of his parents, and this up to the maximum age of 25,” adds Amandine Chaigne, president of Ade-ci Family Office. However, it is necessary to anticipate the child’s majority because he will then be the sole manager of his savings. It’s best to prepare for this step carefully. “We systematically organize a meeting during the year the child turns 17 in order to explain to them, in the presence of the family, what becoming an adult entails,” relates Alexandre Castagnon. It is even possible to start earlier and gradually involve the child in the management of their emerging assets. “This is an opportunity to teach him the basics of the stock market and to give him financial education,” says Amandine Chaigne.
From this summer, we will finally have to take into account the future climate savings plan, a new envelope inspired by the retirement savings plan which will be blocked until the holder reaches the age of majority and whose investments must have an ecological coloring. An additional string to the bow of far-sighted parents.
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