Does Saving During Childhood Still Make Sense?
- Apr 28
- 5 min read
Updated: May 4
While November 20th is Universal Children's Day—a date established to commemorate children's rights and promote their well-being—some countries celebrate this day during the month of April. Examples include Bolivia (Apr 12), Spain (Apr 15), Türkiye (Apr 23), Colombia (the last Saturday of April), and Mexico (Apr 30).
On these dates, we celebrate our children with gifts, experiences, or unforgettable moments. However, within this context, it is worth asking ourselves: What are we building today to protect their future tomorrow? As money loses value over time, building the foundations of their wealth is no longer just an option—it has become a responsibility.
The Real Risk is the Loss of Value
Many parents believe that simply encouraging the habit of saving in their children is enough. However, today, the issue is not just how much and how often to save, but how to ensure that the value of those savings is preserved over time.
Who doesn't remember saving a large number of coins during their childhood, slowly accumulating them in a piggy bank until it was finally full? The big day to open it would eventually arrive, often accompanied by great disappointment upon realizing that those savings—built with effort and consistency—had lost most of their purchasing power due to inflation. In many countries, they may have even lost their value entirely due to massive devaluations and the withdrawal of those coins from circulation.
Does it make sense to repeat this well-intentioned but flawed practice with our children? More importantly, what message do our children receive when they discover how futile years of effort to build savings can be?
The traditional savings model is broken as a result of the inability of fiat currencies to preserve their value over time. Today, there is not a single currency in the world with solid backing beyond simple promises to pay. Those great stories of strong currencies backed by gold are a thing of the past. Today, governments print money out of thin air to meet short-term goals, without the slightest concern for the future value of their currencies.
This phenomenon is not exceptional; it is constant and cumulative. It is, therefore, no surprise that the Dollar—the world's primary "reserve currency"—has lost 93.8% of its value against gold since the beginning of the 21st century, and that the Euro—to date the second most used currency globally—has lost 94.3% of its value against gold since its creation in 1999.
How to Preserve Value?
Given the reality described above, the key lies in selecting the right asset to channel savings; an asset capable of preserving and increasing its purchasing power over time. In that sense, for over five thousand years and across the globe, gold has proven its ability to protect the wealth of its owners. A very simple yet significant example is the "Parable of the Suit":
In Ancient Rome (1st and 2nd Centuries): The attire of a high-class Roman citizen to attend the Senate—consisting of a high-quality wool toga, a leather belt, and handmade sandals—was worth exactly one ounce of gold.
In the Victorian Era (19th Century): One ounce of gold still dressed a gentleman to the highest standard of the time: a bespoke three-piece suit made in Savile Row, London, including a shirt, leather boots, and a top hat.
Today (21st Century): One ounce of gold (priced at US $4,620 at the time of this article's publication) is more than enough to buy a luxury designer suit (such as Armani or Canali), Italian leather shoes, and high-end accessories.
Thinking as Parents Means Thinking Long-Term
As a result of currency devaluation and the subsequent erosion of purchasing power (inflation), the costs of education, healthcare, and housing—the three pillars of a child's future—have risen far above the growth of average incomes.
When a child is born, the natural planning horizon is 15 to 25 years. This period defines key milestones: education, university, financial independence, and first life projects. Here, something important happens: time can work either for or against them, depending on the asset chosen for savings.
If those savings are kept in instruments that do not outperform inflation, the result is predictable: time becomes their worst enemy, and the effort made over the years becomes futile.
In contrast, if an asset that has historically preserved its value is chosen—as is the case with gold—time becomes their primary ally.
20 Years of Perspective
Let’s use an example to illustrate this situation: Assume a child born in 2005. With the support of their parents, they save US $10 a week—that is, US $520 a year. After 20 years, what would be the value of the accumulated wealth if it had been saved in Dollars versus Gold?
SCENARIO A | SCENARIO B | ||
|---|---|---|---|
Year | Saving in Dollars (USD) | Avg. Price per Ounce of Gold (USD) | Saving in Gold (Ounces) |
2005 | $520 | $445 | 1.169 |
2006 | $520 | $603 | 0.862 |
2007 | $520 | $695 | 0.748 |
2008 | $520 | $872 | 0.596 |
2009 | $520 | $972 | 0.535 |
2010 | $520 | $1,225 | 0.425 |
2011 | $520 | $1,572 | 0.331 |
2012 | $520 | $1,669 | 0.312 |
2013 | $520 | $1,411 | 0.368 |
2014 | $520 | $1,266 | 0.411 |
2015 | $520 | $1,160 | 0.448 |
2016 | $520 | $1,251 | 0.416 |
2017 | $520 | $1,257 | 0.414 |
2018 | $520 | $1,268 | 0.410 |
2019 | $520 | $1,393 | 0.373 |
2020 | $520 | $1,770 | 0.294 |
2021 | $520 | $1,799 | 0.289 |
2022 | $520 | $1,800 | 0.289 |
2023 | $520 | $1,941 | 0.268 |
2024 | $520 | $2,386 | 0.218 |
2025 | $520 | $3,432 | 0.152 |
Total Saved | $10,920 USD | 9.326 ounces | |
Current Value | $10,920 USD | $4,620 USD/Oz | $43,087 USD |
The difference is staggering: had they saved in gold, the current value would be nearly 4 times the amount saved in dollars. This differential could represent the cost of a university education, the seed capital for a business, or a true financial safety net in adulthood. This is a clear example of how gold preserves and amplifies purchasing power over time —something that fiat currencies fail to achieve.
Time: The Most Powerful Asset
It is equally interesting to observe the impact of saving during the early years in the previous example. In 2005, one year of savings was equivalent to 1.169 ounces of gold. By 2025, that same year of savings was equivalent to only 0.152 ounces. This demonstrates how time works in favor of gold savings: the older the contributions, the greater their value and purchasing power. This is the exact opposite of what happens with cash savings.
There is something many parents overlook: Starting early and saving consistently is far more important than saving large amounts. Significant contributions are not necessary; small amounts saved steadily over the years have a profound impact if they are held in a store-of-value asset like gold. Over time, that discipline translates into something invaluable: peace of mind for your children when they need it most.
More Than an Investment: An Act of Responsibility
Saving in gold with your children in mind is an acknowledgment of reality: money loses value as time moves forward. It is a conscious decision to strategically preserve their heritage.
This Children's Day, in addition to celebrating their present, it is worth asking ourselves a deeper question: What are we doing, in financial terms, to safeguard our children's future?
Protect Your Savings
Aktagold helps individuals worldwide protect their wealth from economic instability by providing access to savings in physical gold, stored in high-security vaults at the Royal Canadian Mint® in Ottawa (Canada), offering a level of protection once reserved for the wealthiest investors.
