Wednesday, April 20, 2011
Want Your Kid to be a Millionaire? It Can Happen
Clark Howard has some awesome advice on saving money. If you don't catch him on CNN, you can follow him on Facebook or on his website at www.ClarkHoward.com. I recently saw a clip on how your child can become a millionaire. Simply having your child save $2000 a year in a ROTH IRA from age 16-21 and never saving another penny, they can become a millionaire by age 65. This is very good advice, and I was lucky enough to have a father insist that I save the money I earned from waitressing and put $2000 in my IRA every year. Boy, am I thankful he did!! In fact, when I was in college (which I paid for myself), he even insisted then that I take out student loans for school and use the money I earned to fund my IRA. So, lucky me--according to Clark, I should be a millionaire by age 65 (or pretty darn close!) My husband was really surprised when we got married to see how much money I had in my IRA, considering I always worked in the social service sector at low paying jobs that barely paid my bills.
So, insist that your working teen invest in an IRA every year. Even if they can't make the entire $2000, invest what they can. They will thank you later!