Saving for your children
As many of you know, I'm a huge follower of Dave Ramsey. I was listening to his radio show yesterday and someone asked how quickly their child's small savings would turn into a million dollars. Here was his answer:
When a child is a year old, investing only $500, earning average of 12% interest, and never adding another dime to it....that $500 would turn into one million dollars when your child is 68 years old!
Now, I know $500 is nothing to sneeze at, but what a great way to help give your kids a good start to a secure retirement fund! Both of our kids have around $500 in their basic savings accounts, and we've simply saved birthday money here, some Christmas cash there, a small amount amount of rolled change....I don't think very much of that $500 has been money we have actually put away for them. I definitely plan to get this money invested for them fairly soon! I just thought it was a fun way to look at saving for your child. It seems hard to believe that such a small amount can turn into one million by the time our kids would be close to retirement.
savings
We have bought bond for the kids. My oldest (5) has a couple thousand dollars in bond. We bought either a $500 or $1000 bond with the tax return and then $50-$100 bond for birthdays. I do however want a savings account for them. I looked in my sons wallet yesterday and he has $82 in there. My husband and I talked and thought about getting each of the kids a saving account and have just $5 a week transfered from our account to each of the kids and then half of hte money they get or earn they need to put in their account. Of course that doesnt really work for the baby but Brayden gets money all the time and he wants tosave it...thats why he has $82 but he should save in an account not just in a wallet.
I agree
We just purchased some stocks last night because the market is at is best right now to buy. TCU as a great plan also for college for your kids; my son as one and all moneys from birthdays and Christmas goes there. Like Dave Ramsey says "Lets help our childrens future and have a great start in life" of course it will be our responsability to teach him after how to make it grow and be responsabile with it : )
It can't be bad, after all they are the one that will take care of us later!
College
A few years back I started asking the grandparents to not buy as much for the kids for Christmas and their birthdays and buy bonds and such that will help them later on to help pay for college. All the grandparents were happy to do this except my new in-laws. But she usually gives me the money and tells me to go and buy what they want, SO I just buy the bonds for them. Once it's done it's done! Saving is hard to do, especially since I didn't have a job for over a year back in Ohio. But we try to put away as much as we can.
I also strive for my kids to do their best in school to help pay for college with grants and scholarships.
Joni Lochtefeld
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