A parent can accumulate over 52,000 lei by saving child allowance for 18 years, according to a press release from Aegon Romania.

At present, the population aged 0 to 18 is 2,838,532, according to a recent report by the National Institute of Statistics. They receive a state allowance of 300 lei/month until the age of 2 and 150 lei/month thereafter.

If a parent were to manage this money for 18 years through a life insurance with savings, they could get more than 52,000 lei, compared to 36,000 lei, the total of the non-invested allowances.

Aegon is campaigning to raise awareness and educate Romanians to take out more insurance to secure their financial future. To this end, the company launched in the middle of this year the campaign “How do you invest your child’s allowance?”, together with Banca Transilvania and Alpha Bank, which focuses on life insurance as a sustainable investment option for your child’s future allowance.

“Apart from health, education is the most important for a child’s future and it is natural for a parent to be in a constant concern to give their children the chance to be able to attend the best educational institutions, in the country or abroad. Also, according to The Complete University Guide, the average cost of attending higher education in Romania is €2,000 per year, while abroad it can be over €10,000 per year. We took all this data into account when we decided to launch the “How do you invest your child’s allowance?” campaign, which is aimed at parents who receive their child’s allowance monthly in an account opened at Banca Transilvania or Alpha Bank.

We want to encourage people to use their child’s allowance to invest in their child’s future, thus ensuring access to quality higher education. Precisely because the monthly allowance is not a large sum, there is a chance that it will be spent on things that are not significant in the long term. A life insurance with savings, such as Aegon Fii Sigur and Aegon de Viitor, is a significant financial support that you can offer to your child when he or she comes of age, helps you to be consistent in saving money in the long term and protects the family in case of accident or death of a parent”, explains Sînziana Maioreanu, CEO of Aegon Romania.

The campaign “How do you invest your child’s allowance?” targets all customers of Banca Transilvania and Alpha Bank who receive their child allowance in an account opened with either of Aegon’s two banking partners.

In addition to disciplining long-term saving behaviour, this type of insurance also offers the insured person financial support in unforeseen situations, as it is a life insurance with savings.

The amounts received from the state by children and young people aged 0-18 have been increased, from 1 April 2019. Thus, a child up to the age of two now receives an allowance of 300 lei/month, compared to 200 lei previously. Allowances for children and young people aged 2 to 18 have increased from 84 lei/month to 150 lei/month.

“A parent’s biggest concern is for his or her child, whether it is to help him or her go to college, make a down payment on a house, start a business, buy a car, etc. This is natural and we have noticed it among Aegon customers. For example, one out of two customers name their children as beneficiaries of their insurance policies. This is why I think it is important to support them and offer them savings solutions that directly benefit their descendants”, added Sînziana Maioreanu.

“Another concern I have noticed from discussions with our clients is related to the cost of studying in the higher education system. Given that the data provided by the European Commission shows that just over 26% of Romanians have higher education, compared to the European average of 40%, I think it is important to encourage parents to save money to contribute to their children’s education. Also, Eurostat surveys show that 80.7% of university graduates in Romania find a job immediately after finishing their studies, which shows, if it were needed, that investing in education equals better professional opportunities”, added the CEO of Aegon Romania.

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