What do you do with your money: save or invest? Kamal Kharmach gives advice

Finding correct information about investing and other financial matters should be as easy as making a sandwich. That's the message Kamal Kharmach, comedian and TV personality, as well as entrepreneur & successful investor, conveys in a new series of explainer videos by Club Beleg. At clubbeleg.be, you will get an explanation of the basics of investing and an overview of several possibilities. Would you like to know the answer to what is best to do with your savings and what insurances are available? Do you have no idea how the financial market works and what terms like ‘derivatives’ or ‘savings bonds’ mean? Kamal explains everything in great detail using... sandwiches.

The most popular investment products among Belgians are:

1. The supplementary pension (46%)

2. Investment funds (42%)

3. Insurance products (37%)

4. Shares of listed companies (30%)

For young people, these choices differ slightly:

1. Investment funds (35%)

2. The supplementary pension (27%)

3. Shares of listed companies (25%)

4. Cryptocurrencies (20%)

Interestingly, 11% of young people do not know if they are currently investing, which may indicate a lack of knowledge of key financial concepts or a lack of discussing this topic.

The barrier to effective investing is real, the figures prove. The three main reasons for not investing are: lack of money (46%), insufficient knowledge (39%), and fear of losing money (33%). So there is definitely something to be done about this, with the basis being financial education. Better information could encourage Belgians to take the plunge into investing. For instance, 31% of non-investors say they would take the plunge if they had more information. Among young people, this percentage is even higher, with 48% considering starting if they were better informed. Among 31-79-year-olds, the figure is 25%. Another thing that stands out in the study is that many do not appear to have the necessary knowledge about sustainable financial products, with 57% of Belgians not knowing whether their investments are sustainable.

Information on such financial matters is still mainly sought from one's own bank or insurance company. And so the financial sector has a crucial role to play in meeting the information need.

‘Saving? That's for later!’ It turns out to be true that young people in particular think this way: as many as 46% think they still have enough time to start saving, compared to 32% of the overall population. This procrastination can unfortunately lead to insufficient financial resources later in life.

Another notable trend is cryptocurrencies: among young investors, they remain very popular, with 20% of them buying cryptocurrencies. This is despite a lack of knowledge. That is why Febelfin developed all kinds of free content for young people and material for teachers to delve further into this subject.

When it comes to financial information, young people place a lot of value on advice from family and friends, and ‘finfluencers’ also remain an attractive source of information for them. For instance, 23% of young people would consider following the advice of ‘finfluencers’ on investment products or cryptocurrencies.

It is therefore important to give wise advice to avoid scams and quick profit suggestions. Febelfin launched a high-profile campaign on the subject in March 2024.

Club Beleg's revamped website (clubbeleg.be) responds to today's specific needs. With all kinds of comprehensive and up-to-date content on investing, saving and insurance, it gives beginning investors a complete overview of all possibilities. Including the benefits, risks and possible losses. And it doesn't stop there: other educational initiatives, such as the website mijngeldenik.be for young people and educational material for teachers are always under development. All this makes it easier for everyone to gain financial knowledge and make informed decisions.

Soon, the monies from the one-year state bond will be released and then no doubt a lot of Belgians will be looking for ways to reinvest this money. Prepare well and visit clubbeleg.be to find out how best to put your money to work!