The initiative known as the «Piggy Bank for the New Generation,» announced by Kyriakos Mitsotakis at the Thessaloniki International Fair, presents an intriguing and appealing proposal. Parents will have the opportunity to save up to €1,200 annually for their child, with the government matching this amount, ensuring that the capital remains locked until the child reaches adulthood.
Estimates suggest that if a family manages to save approximately €25,000 over 18 years, the child could have around €50,000 by the age of 18, thanks to the equal state contribution. Furthermore, if there are positive returns from investments in the markets, the final amount could potentially rise to as much as €77,000. However, a critical question arises: what will the value of this money be in 2044?
A significant portion of the opposition’s critique focuses on the argument that «the Greek family cannot save €1,200 a year.» Yet, this perspective warrants a different examination. This translates to about €100 a month, or roughly €3.30 a day for each child. While it is evident that some families genuinely cannot allocate this amount, it is overly simplistic to assume that no Greek family can save such a sum.
For instance, a freddo coffee costs around €2.50, while a bottle of water may be priced at €0.50. This does not imply that individuals must forgo their coffee or water, nor does it mean that everyone has the same financial capacity. However, it highlights that within daily consumption, small amounts can accumulate significantly over time. For example, having a €2.50 coffee every day amounts to approximately €900 a year.
Thus, the question extends beyond whether Greek families can save €80 or €100 a month. It challenges us as a society to cultivate a different culture—one that encourages saving a small amount today to provide our children with a substantial capital tomorrow.
Interestingly, there exists a political paradox here. The idea is not new; Fofi Gennimata, as the leader of PASOK, proposed the creation of a «National Savings Account for Children» in 2018. This legislative proposal envisioned a 50:50 contribution model from both families and the state, enabling children to acquire capital for their initial steps into adulthood. A concept previously introduced by PASOK is now being adopted in a different form by New Democracy.
This situation presents voters with a paradoxical dilemma: which PASOK should they support? The PASOK that has been adopted by New Democracy and is leading in polls, or the original PASOK that is trailing behind?
However, this dilemma may not be the crux of the discussion. What truly matters is not who conceived the piggy bank first, but rather who can design and implement it with social justice in mind, ensuring that children will indeed receive the promised funds upon turning 18.
In my view, the opposition’s critique should focus more on what the state guarantees over the next 18 years. How robust is the government’s commitment? What assurances do families have that the promised state contributions will be honored in 10 or 15 years, regardless of which government is in power at that time?
Who will manage the funds? Will it be banks or other financial institutions? What fees will they charge, and who will bear these costs? What happens if a bank or financial institution faces serious issues or even bankruptcy? Will the child’s funds be fully protected and separated from the bank’s assets?
Since the funds will be invested, who assumes the investment risk? If the markets experience a significant downturn just before the child turns 18, who guarantees that the promised funds will indeed be available?
Moreover, a crucial issue of social justice arises. Families with very low incomes may not be able to participate equally. Safeguards are necessary, such as a minimum automatic state contribution for every child or increased state support for economically disadvantaged families. Otherwise, the state support will disproportionately benefit those who already have greater saving capacity, inherently indicating inequality. If we genuinely wish to assist the youth, we must do so in a tangible manner!
The «Piggy Bank for the New Generation» merits serious discussion. If a family saves approximately €25,000 over 18 years and the state contributes an equal amount, we are talking about a capital of around €50,000 for a young person embarking on their life journey. This is certainly not negligible.
However, the essence lies not merely in depositing money into the piggy bank. The core issue is to ensure that the state fulfills its promise, that banks and managers operate with complete transparency, that the funds are safeguarded, and that the child will indeed access their piggy bank upon turning 18. Otherwise, they may find themselves with nothing more than the disappointment of a plain freddo espresso.
