3 WEALTH STRATEGIES FOR KIDS AND TEENS

1st type of Strategy:

Child between the age of 6 and 12 - we recommend 6 as the youngest because they start learning about money in 1st grade and they are starting to comprehend money "things" better at that age.

Teach your child to Give at least 10%, Invest at least 20% and Spend 70%. Imagine you had that habit when you started earning some good money. The average salary in the U.S. in the year 2010 was $46,300. Let's say you work from age 25 to age 50 and apply those percentages over that 25 year period:

  • You would Give $4,630/yr, for a total of $115,750
  • You would Invest $9,252/yr and accumulate in your investment account: $1,023,873 (assuming a 10% r.o.r) or $459,534 (assuming a 5% r.o.r)

How staggering are those numbers? How many 50 year old's do you know that are cash, millionaires? What if you only did half of that? That's still over $500,000!!! The average person over 65, let alone 50, after working all their lives, have less than $25,000 saved!! AND, how great would you feel if you gave $115,750? This example doesn't factor in raises and inflation, so the numbers would be a lot bigger.

2nd type of Strategy:

A teenager, working a part-time job - Need I say more than the example above? Start the habit now. Let's say you start at age 16 - by the time you're 35, you'll be a cash millionaire!!

3rd type of Strategy:

Adult, who accumulated debt, never learned the correct money habits, etc. -You have to start somewhere because if what you've been doing is not working, nothing will change 25 years from now. Let me encourage you to at least start off with any percentage. Did you know, you're the one that programs the percentages so if you start too high, adjust it the following month. Besides, this is not like committing to buy are car where once you sign the contract, you're obligated to that monthly payment. Start off giving 5%, investing 5%, and living on the rest. If that's too much drop it down to 1%. The beauty about this is ANYONE CAN DO IT!!!