“There is nothing like dream to create the future. Utopia today, flesh and blood tomorrow.” – Victor Hugo (Les Miserables, 1862)
Did you know that your children can easily acquire substantial wealth by the time they have to pay the bills for their own families?
Starting with less than $1 a day and getting just 10% returns (a little more than half the returns typical of the last 20 years), you can help your children build a fortune of $148,000 — at the very least.
But it’s more likely they’ll have somewhere between $237,000 and $566,000 — by the time they’re 30! Think about that. With that kind of money behind them, your children will have a huge advantage in everything they do.
The point is that your children, by the time they are young adults, can have a great deal of wealth … and much more too. They’ll also have acquired experience in building wealth. And they’ll have an understanding of how to be responsible with money and continue to grow their wealth.
And that means that when your children reach their 20s and 30s, they’ll have options they might not otherwise have had.
They’ll be able to travel a little more, continue studying if they like, start their own businesses, or pursue the work they really want to do, rather than just settle for the first “jobs” that come along because they have to “pay the bills.”
In short, your children will learn how to use money to better their lives as they grow older. Instead of being overwhelmed by “life’s bills,” they’ll have the financial freedom and confidence to focus on things that are more important than money!
To gain these advantages, your kids must start early. And they’ll never do that on their own. They need your help.
I created Seeds of Wealth for my own three boys, because I want them to have every possible advantage. Like most people, I learned about money and wealth the hard way, when I was in my 20s and 30s, after racking up lots of debt with various business ventures and properties. Today, after working for the past 15 years with some of the best financial experts in the business, I make a very good living, and I’m doing what it takes to become independently wealthy. But I realize that if I had known these things when I was younger, my life would have been a lot easier.
In my course, I cover all the things you need to do and don’t need to do to ensure that your kids have a very nice nest egg — by the time they’re in their early 30s.
Today, however, I’ll cover just one aspect of Seeds of Wealth … what I call “The Two-Box System.”
I recommend that you start this savings and investing program with two $1 bills and two boxes. They can be cardboard or plastic, even colored and designed by your children. Any two containers will do, really. They can be piggy banks, shoeboxes, or whatever your child wants to use.
One box will be for your children’s spending money (temporary savings). The other will be for permanent savings (the money they won’t touch for the next 30 years or so).
And that’s all they really need to begin to build wealth and develop good money habits right away.
To make sure they understand the importance of always saving and investing before spending, you’ll explain how these two types of savings are to be used. To do that, you might say something along these lines:
“One of these boxes is labeled ‘permanent savings,’ and the other is labeled ‘temporary savings.’ They’re both going to go on your dresser. Every time you get a buck, two bucks, 20 bucks, or 100 bucks, half goes into the permanent box and half goes into the temporary box.”
The idea is that while they live in your house, half of all the money they receive — whether it’s from birthdays, chores, or any other source — goes into the box labeled ‘permanent savings.’
When the total reaches a few hundred dollars, you will count it out together. And you, as the parent or grandparent, will invest it for your child or grandchild for the long term.
This, of course, is only the beginning. There are many other things your children should be learning early on … and various situations you’ll have to explain and plan for. But simply implementing the Two Box System is a good start.
In fact, this technique alone will put your children ahead of 99% of the population.
I’ll explain more in future issues of ETR.