The Russian government’s “maternity capital” comes with a number of caveats.
Two-thirds of Russian families would like to invest financial assistance granted by the state to boost fertility, and cryptocurrencies like Bitcoin are among the most favored options.
According to a new survey, the majority of moms and dads don’t have a clear idea about what they may do with the one-time benefit given for the birth of a child in Vladimir Putin’s Russia.
Few families in Russia know what they can spend maternity pay on
Only a fifth of Russian parents are aware of the things they can buy with the government aid to support birth rate, a recently conducted poll has found. About 19% knew the exact list of options, the Gazeta.ru news portal reported on Wednesday.
More than half, 54%, could name just a few, and 27% did not understand the question. Strangely enough, more women (34%) than men (22%) didn’t know about the possible ways to spend the money, according to the study by the Renaissance Insurance Group.
The poll is focused on what authorities in Moscow call “Maternity Capital,” a federal subsidy meant to encourage Russian families to have more children.
Launched in 2007, the program has been providing financial assistance to married couples upon the birth or adoption of a second or subsequent child. Since 2020, it has been expanded to include first-borns as well.
This year, the amount granted for a first child is more than 690,000 Russian rubles (almost $8,800), and almost 222,000 rubles (over $2,800) for the second and subsequent children, if the family has already received the first grant.
Parents don’t get the cash. Instead, they receive a special certificate that they can use for various purposes, such as improving living conditions by renovating their home, for example, making a down payment for a mortgage or contributions to a retirement fund.
Asked to name some categories of costs they would like to cover, the largest group, 32%, said buying a car. The top three answers also included using the funds as a safety net for unexpected or important expenses (28%) and to pay medical bills (22%).
Another 21% of the respondents shared they would rather spend the state aid on cosmetic home repairs, while almost as many, or 20%, said they wanted to finance training courses to improve their professional qualifications.
One in four Russian parents want to invest maternity money in crypto
The authors of the survey established that a significant portion of the participants are ready to make riskier investments. Among them, they listed stocks (30%), bonds (26%), and last but not least – 26% admitted they would consider acquiring crypto assets.
On the question of who should control spending, 38% of the polled were categorical that parents should have that privilege. Among parents, men are more likely than women to support this view, 41% against 35%, respectively.
Some 17% are convinced that such decisions should be made by all people in a household, and 45% are ready to entrust the management of the maternity capital to their children, although over half of them emphasized reaching a certain age before handing over control.
Putin’s aid comes with a number of caveats that Russians were recently warned about in another article published by Gazeta.ru in mid-June. For example, when buying a new home, every family member should be allocated a share, as required by law.
This can seriously complicate any future deals with an apartment, according to Russian realtor Maria Krets, who explained:
“In order to sell a home in which a child holds a share, it’s necessary to obtain permission from the authorities … a confirmation that the child’s living conditions will improve after the sale.”
“In practice, this means parents need to take care of purchasing alternative real estate in advance, where the child’s rights will be fully respected,” the realtor elaborated.
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