MyMoney Online, Personal Finance with Warren Ingram

How to help your children get rich (long before they start working)

Also, read:

You know this already:

The smartest thing you can do for yourself financially is to start saving for your retirement as soon as you get your first job.

Starting to save early has a MASSIVE impact on how much you end up with.

Have you ever, asked Sam Beckbessinger, considered how much of a difference it could make if you gave your child a 20-year headstart by starting to save for her retirement from the day she’s born?

If, for example, you manage to scrape together R2750 a month from the day she’s born, and put it in a Tax Free Savings Account (TFSA) until she’s 16 (i.e. max out the TFSA allowance for them), then your kid will never have to save a cent for their own retirement and can live off R87 000 a month from age 65 (yes, taking inflation into account!).

Or they could retire at age 43 on a monthly income of R20 000 a month, even if she never saves a cent in her life.

Most new parents don't have an extra R2750 a month to save, and most people probably feel like kids should save for their own retirements.

But it's still a fascinating illustration of how powerful compound interest is.

Perhaps you have an extra R100 or R200 a month to save; is it worth it?

It is, said Beckbessinger.

What matters most is for how long you can leave that money alone.

The Money Show’s Bruce Whitfield interviewed Beckbessinger for his weekly personal finance feature.

For more detail listen to the interview in the audio below.

Get the 10 most-read articles of the week from Bruce Whitfield’s The Money Show, emailed to you every Friday morning:

Subscribe to our Business Wrap Newsletter


This article first appeared on 702 : How to help your children get rich (long before they start working)


Recommended

by NEWSROOM AI
Read More
[WATCH] Volkswagen’s new feel-good Kombi ad 'Cupcake Boss' is brilliant

[WATCH] Volkswagen’s new feel-good Kombi ad 'Cupcake Boss' is brilliant

Advertisers traditionally warn against working with children. In this ad it works beautifully, says ad expert Andy Rice.

Court orders Gupta-linked Trillian to pay back R600 million to Eskom

Court orders Gupta-linked Trillian to pay back R600 million to Eskom

It also ordered the company to pay for all the costs of the application. Bruce Whitfield interviews EWN’s Clement Manyathela.

Comparing milk prices across Africa suggests the rand may get stronger

Comparing milk prices across Africa suggests the rand may get stronger

The Money Show’s Bruce Whitfield interviews Neville Mandimika, Africa Strategist at Rand Merchant Bank.

I’ve never seen anything like this! – Simon Brown on Old Mutual vs Peter Moyo

I’ve never seen anything like this! – Simon Brown on Old Mutual vs Peter Moyo

The Money Show’s Bruce Whitfield interviews Simon Brown, Financial Educator at Just One Lap.

How to save and buy an island (you need only R2000 per month)

How to save and buy an island (you need only R2000 per month)

Saving money on boring stuff such as a car can allow you to do really outrageous and courageous stuff, says Sam Beckbessinger.

You’re a f*cking grownup. Manage your money like one

You’re a f*cking grownup. Manage your money like one

Sam Beckbessinger on her book “Manage Your Money like a F*cking Grownup: The Best Money Advice You Never Got”.

Popular articles
I’ve never seen anything like this! – Simon Brown on Old Mutual vs Peter Moyo

I’ve never seen anything like this! – Simon Brown on Old Mutual vs Peter Moyo

The Money Show’s Bruce Whitfield interviews Simon Brown, Financial Educator at Just One Lap.

[WATCH] Volkswagen’s new feel-good Kombi ad 'Cupcake Boss' is brilliant

[WATCH] Volkswagen’s new feel-good Kombi ad 'Cupcake Boss' is brilliant

Advertisers traditionally warn against working with children. In this ad it works beautifully, says ad expert Andy Rice.

Court orders Gupta-linked Trillian to pay back R600 million to Eskom

Court orders Gupta-linked Trillian to pay back R600 million to Eskom

It also ordered the company to pay for all the costs of the application. Bruce Whitfield interviews EWN’s Clement Manyathela.

Fight continues for family of 11 evicted from Paarl wine farm

Fight continues for family of 11 evicted from Paarl wine farm

On May 7, the Land Claims Court heard an application to have the eviction of Nomabongo Sweetness May and her family rescinded.

Investigation underway into cause of Cape Town hotel fire

Investigation underway into cause of Cape Town hotel fire

Staff and guests at Durbanville's Ruslamere hotel were evacuated while firefighters battled the blaze on Tuesday morning.

Sexual abuse claims at CT orphanage, manager 'under the influence of alcohol'

Sexual abuse claims at CT orphanage, manager 'under the influence of alcohol'

MEC for Social Development Sharna Fernandez says after affidavits taken and charges laid, Al-Noor orphanage has been deregistered.

[WATCH] Internet blown away by best way ever to peel garlic!

[WATCH] Internet blown away by best way ever to peel garlic!

Khabazela shares tweets and Facebook posts that have gone viral.

BP could be fined millions for illegally building 17 petrol stations

BP could be fined millions for illegally building 17 petrol stations

The case against international petroleum giant was brought by environmental group Uzani Environmental Advocacy.