Monday, May. 02, 2011
Encourage Savings
Encouraging your kids to save early might make a big difference in your retirement. If you see that your kids are putting money away for their golden years, you'll feel freer to spend the money you have saved rather than worry about what you will be eventually passing along to your kids. Getting them to save early, even a small amount, can make a huge difference over four or five decades. Consider: $1,000 invested each year for 50 years and which grows at 8% a year results in $708,917. The same investment over 40 years results in less than half that total—just $314,086. So get them started early.