Turning Kids into Millionaires
Is it possible to turn kids into future millionaires? That's one of the questions and goals on our list of problems to solve in the financial world. However, why wait for our answer when you can do it yourself for your own children?
Our vision includes an America and a world where wealth is spilling over to those in need. To make that happen, we need to start creating millionaires sooner. Many people live out their lives without good financial knowledge and head into retirement loaded with debt and very little savings. By starting with good financial principles and habits sooner, life and retirement can be much sweeter and enjoyable. That's why it's important to think about getting started earlier with our children is so important if we want to change the financial landscape of the world.
Did you know that $2,500 invested properly the year a child is born can make them a millionaire? Yes that's right. Just $2,500 at 10% growth over 65 years becomes a million dollars. With a little more money, say $10,000, invested at birth, we can build a net worth around $4,000,000.
Now that sounds really nice, but what if you missed getting started that early? As long as you get $10,000 invested in a fund returning 10% annually before age 21, there's a good probability that the investment will be worth $1,000,000 or more when the child is in their 60s.
Changing the world's financial future has to start with our children, each and every one, so here are some thoughts on how you can do your part.
Start with your own children
Sponsor financial literacy in your local city
Be financial literacy advocate in your own church
Start with Your Own Children
After you learn how to handle money well and put together your own millionaire plan, teach your children. With the right plan, it's possible for a kid to save $10,000 into a mutual fund by age 18. Yep. That's right. Any kid can set themselves up to be a millionaire by age 18. That's based on odd jobs from age 13 to 15 and consistent work from ages 16-18. Oh, and that also includes meeting their own financial needs like buying a car and having some spending money.
However, if you are little more ambitious and have some spare cash of your own, you can set up a family trust or a trust for your kids and fund it with $10,000 when they are born or by the time they turn 18. That $10,000 can grow to be over $1,000,000 and maybe as much as $4,000,000 depending on how the economy goes.
Sit down and work up a 6 year budget with your child from ages 13 to 18. Help them understand the possibility of what they can accomplish. It will be a little overwhelming for them at first, but little by little the concepts will become more clear. From ages 13 to 15, babysitting, mowing yards and odd jobs are the primary income streams. At age 15, employment becomes a possibility and continues through age 18. Earning around $10 an hour and working part time can make that $10,000 goal a reality.
Sponsor Financial Literacy in Your Local City
Financial literacy is an important topic in today's world. Financial Literacy is just as important as any other subject taught in our school system, but it doesn't receive nearly as much attention. Unfortunately, kids are under educated when it comes to money, and they are left ill equipped for a world filled with debt and impulse buying.
Take the initiative to influence your local area by reaching out the school your child attends or just express interest as a concerned citizen. Just a little effort can go a long way to helping make a difference in a child's life and set them up for a better financial future.
Be a Financial Literacy Advocate in Your Own Church or Youth Organization
Any youth group can be a great place to address financial literacy. While 75% of Americans live paycheck to paycheck, that can mean up to 75% of the kids in local youth programs are being exposed to bad financial habits and hardships. Implementing financial literacy in a local youth group can be a great way to set a child on a good financial track and break their family's cycle of financial mismanagement.