– The day after I turned 18, I went down to the bank and opened a share savings account, says Thomas Risanger Rød (18). He turned 18 in January, and since then has been saving in a fund every month. – I do experience that things are becoming more expensive. House prices are expected to rise, food prices are getting higher and the benefits of saving in BSU are no longer as good, he says and continues: – I have saved at least NOK 2,000 a month since I started. – It’s a lot of fun to go on the phone and look at the green numbers, and think that “here I have been responsible”, says Thomas Risanger Rød. Photo: Henriette Nordheim / news Risanger Rød is an apprentice chef and has also worked a lot during summer holidays. He thinks it’s fun to watch the money he earns grow in the funds. – You put in some money, and then you forget about it. And I actually do that every month, and I think it works wonderfully. It gives a little dopamine sensation in the brain. Large increase in young people saving in funds news has contacted several Norwegian banks, and all report a large increase in the proportion of young people between the ages of 18 and 30 who save in funds. See the fact box below for the figures. These are the figures from the banks: DNB has had a 78 per cent increase in those aged between 18 and 30 from 2019 to 2024 who save permanently in funds. The number of customers who have placed their savings in mutual funds has increased by 52 per cent in the same period. Nordea reports more than a doubling from 2013 until 2021 in the same age group, and the proportion then increased from 7 to 17 per cent. Sparebank 1 says that from 2022 to this year, the number of fund savers among young people aged between 18 and 30 has grown by 31 per cent. Thomas Risanger Rød (18) feels that more young people have become aware of their own finances. Thomas Risanger Rød (18) thinks it’s great that more young people are talking about finances and becoming aware of their own savings. Photo: Henriette Nordheim / news – I find that more and more people are working, and that people think it’s a good idea to save, he says. – Do you feel that saving is a bit trendy? – Yes, but I also feel that it is just as trendy to waste. But I think it is absolutely worth saving the money in the long term. My goal is housing and maybe the patch. Do you save in funds?💸 💰 Yes Yes, but I want to save more No, but I want to start No Show result This is what the banks say: All the banks news has spoken to are experiencing an increasing interest in saving in funds among young people, and a change in saving habits. They point to several reasons for this. Hans Erik Lind, managing director of Nordea Liv, believes one of the reasons is poorer incentives in the BSU scheme (housing savings for young people). – You get a smaller tax deduction on the BSU scheme. This makes the BSU schemes in which many young people have saved less attractive. We think that may have contributed to driving more young people into mutual fund savings, he says. Behnaz Ganji, DNB’s savings expert, says that there are big changes after the corona pandemic. – During the corona pandemic, you may have had more money to spare because there were no social things to spend money on. So it is natural to think that the surplus was larger, she says and adds: – And even though expenses have increased after that period, considering that interest rates have increased, you have entered into such good savings routines that you have managed to maintain it. Sondre Kverneng Nordnes, head of business development at Sparebank 1, believes that young people are influenced by social media. – I think social media helps to open your eyes a little more to investing your money, he says and continues: – I also think that young people talk a lot more about saving. It is something we also experience, that 18-year-olds come into meetings and say “What about fund savings?” without the adviser having brought it up. It’s fantastic. Started saving in funds as a student Christine Jakobsen Moberg (25) was a student when she started investing in funds in 2020. With a limited income, she started saving NOK 400 a month. Photo: Henriette Nordheim / news – I set up a share savings account in my bank, and I also only took the most popular index funds. I also set up permanent savings in two different funds, she says and adds: – It was really just to test it out a bit. She is happy that she started saving in funds when she had little money. – When I later got a job and a higher salary, it was already a habit. The only difference is that the fixed charge is much higher, she says. Jacobsen Moberg shares openly about personal finances on TikTok. – I want to show that anyone and no matter who you are, you can actually save in funds, she says. – I take measures to spend money on what I actually want to spend money on, and not like this, says Jakobsen Moberg with a laugh. Photo: Henriette Nordheim / news – With returns also comes risk Consumer economist Espen Østvold Rølla believes that it is good to save in funds as long as you know the advantages and disadvantages of it. Consumer economist Espen Østvold Rølla recommends talking to an adviser at your bank to find out which fund to save in. Photo: Henriette Nordheim / news – The advantages of fund savings are that you have the opportunity to get a higher return, i.e. more money left for what you save, than if you have money in a normal savings account, he says and continues: – With returns also comes risk. The risk is that you can lose the money you save. Fund dictionary: Fund: A collection of shares or interest-bearing securities. You invest in many companies and stock markets at the same time. Share: A share in a limited company. Share savings account: An account where you can buy and sell shares and mutual funds tax-free. Index fund: An index fund is a type of fund that follows the development of a specific stock market index. It is a passive fund which means that the investment securities are selected automatically to match an index or part of the market. Actively managed funds: The selection of investment securities is made by a portfolio manager and does not follow an index. Return: Money you earn from investing. Risk: The uncertainty or possibility of loss associated with an investment. Østvold Rølla adds that the money you save in a fund should be able to stay there over a longer period of time for it to pay off. – What type of fund do you recommend? – If you are young and are going to save in funds for the first time, I would recommend trying global index funds, or Norway index funds. How do you actually start saving in funds? Watch Fanny create fund savings for the first time: You hear that saving in funds is a good idea, but where do you start? What should one think about? Published 22.10.2024, at 21.24
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