A Real Client Story: Buying and Selling Property in Alanya
Savings and Investments for Children: What Really Works for the Future
A child’s financial future today is no longer just about “saving money for a rainy day.” Education, studying abroad, relocating to another city, or purchasing real estate — all of this requires long-term and well-thought-out financial planning.
Parents are increasingly asking the question:
👉 where and how to save money for a child so that by the age of 18 it becomes real financial security, not just an amount “in an account”?
In this article, we will review all legal and applicable savings and investment options for children in Turkey, compare them, and show which tools are suitable for different goals.
1. Fixed-Term and Savings Deposits (Vadeli Mevduat)
A classic bank deposit with a fixed interest rate for a specific period.
How it is used for children
- the account is opened in the child’s name;
- managed by parents or legal guardians;
- funds are protected and easy to forecast.
Pros
- ✔ minimal risk
- ✔ clear and guaranteed income
- ✔ high liquidity
Cons
- ✖ often does not beat inflation in the long term
- ✖ does not provide significant capital growth
Suitable for: short-term goals, courses, activities, temporary reserves.
2. Gold Investments (Gold Accounts)
Bank accounts denominated in grams of gold without physical storage.
How it works
- a gold account is opened;
- gold can be purchased regularly in small amounts;
- no physical gold is required.
Pros
- ✔ protection against inflation
- ✔ value preservation over the long term
- ✔ suitable for regular contributions
Cons
- ✖ does not generate regular income
- ✖ not an active growth instrument
Suitable for: capital protection, supporting savings, future down payments for property.
3. Investment Funds — the Key to Capital Growth
Collective investments managed by professionals: stocks, bonds, gold, mixed strategies.
How they are used for children
- an investment account is opened through a parent;
- funds are selected based on long-term goals;
- monthly automatic purchases can be set up.
Pros
- ✔ highest growth potential
- ✔ compound interest effect
- ✔ flexibility and scalability
Cons
- ✖ short-term fluctuations possible
- ✖ requires patience and strategy
Suitable for: education, studying abroad, starting adult life, future property purchases.
4. Private Pension System for Children (BES under 18)
A long-term savings system with government support.
Key feature
📌 government contribution of up to 30%
Parents make regular contributions, while the state adds an additional percentage to the accumulated amount.
Pros
- ✔ strong long-term capital growth
- ✔ government-backed incentive
- ✔ suitable for systematic savings
Cons
- ✖ limited liquidity
- ✖ early withdrawals reduce benefits
Suitable for: long-term planning, retirement capital, disciplined family savings.
5. Real Estate Investments
Purchasing real estate as a long-term investment asset to build capital by the time the child reaches adulthood.
How it is used for children
- the property is registered in the parents’ name;
- the property is selected with an investment purpose.
By the time the child turns 18, it can be used as:
- capital;
- a source of income;
- housing or a base for education and relocation.
Pros
- ✔ protection against inflation
- ✔ tangible real asset
- ✔ potential for value growth
- ✔ possible rental income
- ✔ solid financial base for the child’s future
Cons
- ✖ high entry threshold
- ✖ requires professional property selection
Suitable for: building significant capital, providing housing, creating a source of passive income.
6. Cash Storage or “Money at Home”
Reality
- ❌ unsafe
- ❌ inflation erodes value
- ❌ no growth
This method is not recommended for long-term goals and a child’s future.
So which option is the right one?
❗ There is no single correct instrument.
The most effective approach is a combination:
- investment funds — provide growth;
- gold — protects capital;
- BES — enhances results through government support;
- real estate — creates a tangible base;
- deposit — reserve and liquidity.
This balance:
- ✔ reduces risks
- ✔ increases total capital
- ✔ provides flexibility for the future
Why parents increasingly link children’s investments with real estate
In practice, savings for children often evolve into larger goals:
- education abroad;
- family relocation;
- purchase of first property as an investment asset;
- building family capital.
Real estate in Turkey and abroad is increasingly seen as a financial foundation for a child’s future, not just housing.
The RestProperty Approach
For over 20 years, RestProperty has been working with families planning their future years ahead.
We:
- help combine investments, real estate, and family goals into a single strategy;
- take into account legislation, taxes, and realistic timelines;
- support clients from planning to implementation.
Conclusion
Building a financial cushion for a child is not about “where to put money.”
It is about strategy, time horizon, and the right tools.
✔ Saving — is important
✔ Investing — is necessary
✔ Planning ahead — is wise
This approach gives a child not just money, but freedom of choice in the future.
