I don’t have a wife, much less kids. But if I were to have kids, I would definitely set them on the rat race quicker..possibly for them to retire by their early 40s.
Here’s my how-to-guide:
- As soon as they get their Social Security #, get them all kind of referral bonuses through banks such as ING, Sharebuilder, Virtual bank, etc etc
- Open them an account at affinity bank 10% APY up to $500. That’s like making $50 a year.
- Any money through gifts, set them up a savings account with at least 5% APY.
- Start a wealth trust fund for them by buying ETF’s or Index fund. Do not let them know til 18! Tell them to recycle this method once they have their own kids. This is how the wealthy stay wealthy.
- Add your kids as an authorized user to your credit cards and home mortgage loan so they would build up their credit score. **do not let them know til they turn 18*..must you guess, they will have one hell of an apporama!
- When they get to 5 years old, set them up a 529 plan in their grandparents’ names. Why? Because if you do it in your name, it will count against you for Expected Family Contribution (EFC).
- Screw private school, my kids are going to public school for sure even if I am a millionaire.
- By the time they are 9 years old, set them up as an employee with a salary in your home for doing chores. By doing so, you can set a Roth IRA for them. All of their money should go to the maximum of a Roth IRA. Can you imagine having a 15 year head start on a Roth IRA?
- Never ever spoil your kids with money, but teach them how to earn money and the hard work along with it.
- Screw the likes of myspace, xanga, and facebook…If they want to have a social website,
tellforce them to start a finance blog in order to make money through blogging.
- By 12, teach them entrepreneurship such as setting lemonade stand and garage sale. There are many freebies they can get through the internet. Teach them the value of standing in line for 12 hours to make $5000 profit for Playstation 12! Learn to ebay.
- Emphasize that money is not what you can show, but what is in your bank account. Buying stupid things like the latest cloth or high tech item is a waste of money.
- At the age of 15, get them a weekend job while in school and full time in the summer. Teach them 401K, Roth, tax, etc …all the goodies that come with a J-O-B!
- Just like the real world, you start at minimum wage…but learn to jump ship as soon as a higher paying job comes up. All money should go toward investments.
- Emphasize that learn to be cheap while you ain’t got no money..then move on to being frugal when you do have money.
- Make their ass study hard for school and SAT, and get them to apply to as much financial aid and scholarship as possible.
- By the time they are 18 for college, get them to go to a local university. Buy them a house in your name with 20% down/15 year mortgage, then tell them to find roommates and charge for rent. Charge enough rent whereas the money will cover the mortgage, tax, and insurance. Then transfer the title to their names once they graduated.
- Teach them app-o-rama!
- When they are in college, money should be borrowed to the max through Stafford loans even if they don’t need it. Why? use they 0% interest loans to invest in 5% savings account.
MakeGear them toward financial reward careers such as Dentist(150K to start), MD(200K to start), or Pharmacist(100K to start).
That’s all I can think of…of course your kids must have fun too…especially when they have half a Mil before 30…haha!