How To Secure Your Child’s Financial Future
When we are unprejudiced starting out in our early 20s, nine times out of ten, things are usually heavenly difficult from a financial perspective. But a big part of that is due to the fact that we had spent way too much time playing around and goofing off between the ages of 13 and 21. Nothing is ghastly with that, kids and teenagers are supposed to have fun, but what do we have to show for it?
The key to making sure your child has a easy start living on their have in their early 20s and to securing their financial future for the better lies within their younger years. They are going to need your help at first but eventually, they will need to wait on themselves. Here are some ideas that can help your children:
1) From the first day of your child’s birth, build away one dollar a day for him/her. Open a separate FDIC-insured high yield savings account from your’s and location it up with the bank so that it can automatically be deducted and transferred into that account (that’ll save you the trouble). You can have the bank do this daily ($1), weekly ($7), or monthly ($30). But do this until your child turns 21. Let’s say you set this up with Capitol One’s InterestPlus Online Savings, there will be somewhere between $10,000 to $12,000 waiting for them when they turn 21.
2) Set up an memoir with Textbroker and write 3 articles per week. The average article there is $2 a piece. By your child’s 21st birthday, there will be $45,990 saved up. When your kid is wise and old enough, like say in their teens, and you trust them enough to handle their bear money, have them buy over with Textbroker.
3) Set up an narrative with BrightHub and write 10 articles per month. At $10 per article, that’s $25,200 saved up for your child by age 21. Once again, once you feel your kid is wise enough, have them take over writing at BrightHub.
4) Around the time your child turns somewhere between ages 10-13, begin teaching them about the value of money, jobs, and how to make money online. Now this part is very debatable because every child peaks on an intellectual level at their own pace.
My intellectual peak was at 8 years old, I moved out of cartoon kiddy land and into more adult stuff like Stephen King books, horror movies, etc. I’m not saying have your child do this, I’m unbiased giving an example. Because your child can’t have his head in Neverland 24/7 like most kids do. If I knew about these online money making sites like Associated Content and myLot when I was 10, I would have been all over them, because I love to write and I’m all about finances.
Your kid may not peak until 14 or 15 years stale, my point is the sooner the better. However, once your kid finally realizes that the world revolves around money and that he/she can’t have every toy and candy bar in the world, then we can pick up the ball rolling here.
5) Assuming your kid has peaked and is ready, have him/her use myLot, FrensZone, and MyPage5 instead of Facebook and Myspace. These sites will pay you to do the very same things you are already doing on Facebook and Myspace.
6) Encourage and train your child/teenager to area up their own domain/website and put Google Adsense on it. Encourage them to post at least once a day.
7) When your child is veteran enough as a teenager to have a job while going to school, make sure they know how to save. Big time. No spending on garbage. They have to realize that what they are doing now will benefit them in a huge way within the next decade of their lives.
Assuming their first job will rake in $8 per hour at is working 20 hours per week part time, that’s $160 minus 20% tax (average estimate), that’s $128 per week left over. That’s $46,720 per year. Allow them to spend $10,000 of that, but exercise it wisely. Put the remaining $36,720 into a high yield savings account. Assuming they start working this job at 15, that’s 7 years until they hit age 21. They should discipline themselves to save $36,720 per year, only spending $10,000 on necessities and minute rewards. $36,720 x 7 years = $257,040.
Here comes the beauty of it all: Age 21. By now, assuming the previous steps have been successfully followed, you grown up child should now have a total of approximately $340,230, give or take. Have them deposit $200,000 into a CD for 10 years, let’s say you choose Capital One’s 5 year 3.25% CD, that’s $75,379 waiting for them at age 30. Plus your grown up child will already be working a better paying job by then and will continue to put over those 10 years. As for college, which I highly recommend, your child shouldn’t be spending too much. I’m simply saying don’t go to Superman University where they charge $100,000 for a bachelor’s degree.
Well I reflect I pretty much made my point here, I have just landed you the diagram to loading your child with financial security. Remember, spending wisely and saving are the key ingredients, but time plays a huge factor. Your child just may be able to retire before anyone can even call them an old person – now don’t you wish the United States was like this for everybody? Now that would be a accurate land of the free.
Related Posts
Filed under Upromise College Savings by on Oct 8th, 2011. 