Thursday, May 19, 2016

Show Kids This 2 Million Dollar Picture Of An Early Saving Start

Starting Age Versus Monthly Savings Chart

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.

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