Parent: “When it comes to saving, you need to start early.”
Child: Shrug.“Yeah, whatever.”
It’s pretty easy to shrug off general financial advice — especially when it comes from a parent.
Try painting a specific picture instead:
Parent: “How would you like to have 2 million dollars in the bank when you’re ready to kick back as an oldster?”
Child: “Sounds chill.”
Parent: “If you start at 21, and stash $681 in the stock market every month, you’ll have a great shot at accumulating 2 million dollars by the time you’re 67.”
Child: “Sure sounds like a lot of money every month. I’ll pass until I’m older.”
Parent: “OK, then pick an age to start saving.”
As your child picks ages, look up the corresponding monthly amount required on the chart.
Child: “Wow. $1,126 at 30. $3,661 at 45. Ouch. I better start saving early.”
Parent: Shrug. “Indeed.”
Talk is cheap. Especially vague savings talk. It’ll be ignored. But a precise picture might just be worth 2 million dollars.
Get tomorrow’s tip here.