subject: How To Build Wealth At A Young Age [print this page] Nothing is 'too soon' when it comes to becoming wealthy. You don't need to wait until your older when it comes to building financial wealth. A kid can start building their savings for as young as 7 by starting small.
Here are the top secrets on how to build wealth at a young age:
1. Your child can start earning by small paying jobs from relatives and neighbors. They can earn by mowing the backyard, shoveling snow or watering your neighbor's flowerbed. Tell your child to always do a great job so that customers remain loyal and they can build a strong paying client base.
2. Open a savings account for your child. Shop around the local banks for the best interest rates. Inquire to local banks on the minimum deposit to open a bank account. Choose a bank that is most convenient for you and your child so that they can learn the art of saving and investing early.
3. Teach your child the value of saving. Instead of spending it on useless toys and stuff, teach your child to save their allowance and the money they get as gifts from birthdays, Christmas, etc. Teach them the value of long term saving and discourage spending for instant gratifications.
4. Give them financial books on how to build wealth that are appropriate for their taste and age. Rich Kid Poor Kid is a recommended read. Purchase educational board games like Cash Flow to increase your child's financial knowledge.
5. If your child wants to be a budding investor, then you should purchase them their 1st bond or stock. You don't need to hire a brokerage firm to buy stock, but you can buy their first stock at a minimum purchase price. Choose stock that your child believes in such as Pixar, Disney, Apple, Denny's, McDonalds, Cadbury or Lego.
6. Enroll your child in accounting, business and entrepreneurship courses if they're already old enough. Think of education as an investment for your child's future.
7. Involve your child with creative exercises on imaginary business ventures they want to jump into. For example, if you have US $15,000, what will you do to increase them tenfold? Should you put up an ice cream parlor, a beauty salon or an online consultancy firm? They might not still have the money to put up the venture capital, but it will be fun to imagine business ideas for the meantime.
8. Open a Roth IRA it's a perfect way on how to build wealth. Roth IRA, or an individual retirement account under the tax law of the USA. It was named after US Senator William V. Roth Jr., which allows people to invest young.
The idea of compound interest is at work at the Roth IRA, wherein they can get a return of 9% in a year. If your child opens an IRA account at 15 years old, they can have a return of US $1.2 million by the time they reach 60 years old.
