MyMoney Online, The Personal Finance series 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


Recommended

by NEWSROOM AI
Read More
How to make best use of your year-end bonus

How to make best use of your year-end bonus

The Money Show’s Bruce Whitfield interviews Warren Ingram, Personal Financial Advisor and Executive Director at Galileo Capital.

UK politics descends into chaos as Tories trigger no confidence vote against May

UK politics descends into chaos as Tories trigger no confidence vote against May

The Money Show’s Bruce Whitfield interviews Prof Raymond Parsons (Economist at NWU Business School) and EWN's Alex Eliseev.

The best things to listen to this holiday

The best things to listen to this holiday

What music can do for the soul, podcasts can do for the mind.

How RMB went from 'too poor to buy a photocopier' to the largest bank in SA

How RMB went from 'too poor to buy a photocopier' to the largest bank in SA

Bruce Whitfield sat down with GT Ferreira, Laurie Dippenaar and Paul Harris, the inspirational founders of Rand Merchant Bank.

10 most-read articles of 2018 from Bruce Whitfield's The Money Show

10 most-read articles of 2018 from Bruce Whitfield's The Money Show

It's interesting to see which The Money Show articles were most widely read in 2018; a very tough year for the economy.

Research proves networking doesn’t work (if you try it with strangers)

Research proves networking doesn’t work (if you try it with strangers)

Review of “Friend of a Friend: Understanding the Hidden Networks That Can Transform Your Life and Your Career” by David Burkus.

Popular articles
How RMB went from 'too poor to buy a photocopier' to the largest bank in SA

How RMB went from 'too poor to buy a photocopier' to the largest bank in SA

Bruce Whitfield sat down with GT Ferreira, Laurie Dippenaar and Paul Harris, the inspirational founders of Rand Merchant Bank.

Pop-up bar creates awareness around drunk driving

Pop-up bar creates awareness around drunk driving

Aware.org took on a bold campaign that has made South Africans pay attention.

Mabe faces ANC grievance panel over sexual harassment allegations on Wednesday

Mabe faces ANC grievance panel over sexual harassment allegations on Wednesday

EWN's Clement Manyathela says Pule Mabe is facing a grievance panel to answer to sexual harassment allegations against him.

Popular shoe brand Vans ask Ackermans to remove "knock-offs" from shelves

Popular shoe brand Vans ask Ackermans to remove "knock-offs" from shelves

Vans' brand manager says although this is a recurring problem its main concern is that this particular "fake" is a very close copy.

 'Having a senior official call Lindiwe Sisulu a prostitute is undiplomatic'

'Having a senior official call Lindiwe Sisulu a prostitute is undiplomatic'

Mail & Guardian Africa editor Simon Allison says its undiplomatic for a Rwandan official to call Sisulu names.

[Watch the latest adverts] Do you agree? Chicken Licken is the boss of Nando’s!

[Watch the latest adverts] Do you agree? Chicken Licken is the boss of Nando’s!

Chicken Licken’s latest ad flame-grills the most recent one by Nando’s, says Nicholas Kühne of Wunderbrand.

'Evidence is solid. Poor people’s money was used illegally. Shivambu benefitted'

'Evidence is solid. Poor people’s money was used illegally. Shivambu benefitted'

Ray White interviews Pauli van Wyk, an investigative journalist with Scorpio at Daily Maverick.