Romanians get the hang of securing children's financial future, EUR 17 mln already put aside

Romanians are getting into the habit of putting money aside for their children's future needs, including that of buying a home of their own, a process that has attracted close to EUR 17 million (RON 75 million) into various savings schemes, as reported by lender BCR . “Saving for their children is the second most important motivator for Romanians to put money aside, surpassed only by the concern for a financial backup plan in case of hardship,” stated Catalina Zincenco, head of the BCR Saving Instruments Department. “However, we have noticed that putting money aside is not a true habit yet. That is why we have created the savings plan, a product which primarily serves as an educational tool that forces clients to act more responsibly when it comes to money and to think about saving up every month,” concluded Zincenco Despite the need for more efforts to be invested in this direction, things are looking good as far as children targeted savings are concerned. BCR statistics indicate that the bank's customers have already concluded 50,000 contracts for children's deposits for an average value of approximately EUR 4,444 (RON 20,000). The number of deposits opened in the name of children is also on the rise, with a 50 percent increase in the total volume of children's savings in the past year. The second most popular tool designed to contribute to children's future welfare is the Bauspar savings scheme which enables parents to gradually put money aside in order for their offspring to have a house of their own. Over 20,000 such contracts have been concluded by BCR customers, which accounts for approximately 7 percent of the total BCR Banca pentru Locuinte (Home Savings Loan) portfolio. The average value of savings made by BCR clients ranges from EUR 700 to EUR 1,000, with variations depending on region and on the child's age. In fact, the luckiest beneficiaries so far appear to be those in the 14- to 18-year old category. The value of loans contracted by parents through the BCR BpL (Home Savings Loan) program exceeds EUR 144 million (RON 650 million). Ioana Jelea, ioana.jelea@romania-insider.com (photo source: sxc.hu)