I would like for my son and daughter to have a shot at becoming wealthy when they are older!
So what is a middle income earner like me to do?
My “Work in Process” Plan
Basically to contribute $2,000 per kid until they are 21, then hope they build upon the base that I created for them.
Here is the basic calculations table that I created to help them:
| Age | Amount | Int. Rate | Interest Earned |
| 6 | $2,000.00 | 0.06 | $120.00 |
| 7 | $4,120.00 | 0.06 | $247.20 |
| 8 | $6,367.20 | 0.06 | $382.03 |
| 9 | $8,749.23 | 0.06 | $524.95 |
| 10 | $11,274.19 | 0.06 | $676.45 |
| 11 | $13,950.64 | 0.06 | $837.04 |
| 12 | $16,787.68 | 0.06 | $1,007.26 |
| 13 | $19,794.94 | 0.06 | $1,187.70 |
| 14 | $22,982.63 | 0.06 | $1,378.96 |
| 15 | $26,361.59 | 0.06 | $1,581.70 |
| 16 | $29,943.29 | 0.06 | $1,796.60 |
| 17 | $33,739.88 | 0.06 | $2,024.39 |
| 18 | $37,764.28 | 0.06 | $2,265.86 |
| 19 | $42,030.13 | 0.06 | $2,521.81 |
| 20 | $46,551.94 | 0.06 | $2,793.12 |
| 21 | $51,345.06 | 0.06 | $3,080.70 |
| 22 | $56,425.76 | 0.04 | $2,257.03 |
Now I know some of you might be thinking big deal, 56k isn’t that much. And you would be right. But it’s not a bad chunk of change either!
I would hope that they continue to build it, but if they don’t, at least that would be a great down payment on a house.
Another option would be to keep the money for them and let them draw a little at a time. This would be messy and my kids might start to build a dependency on me. I don’t want that to happen.
I have to admit, another part of me just want to sock extra $2,ooo a year into my account and let that amount grow! Just to see what it does!
Either way, I’ve alread started it, and so the numbers that go to age 10 has already been accomplished.
This is still a “WIP” task, I’ll update this in a future report.
-MR