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Seven years ago on my youngest daughter's first Christmas, her aunt and uncle gave her such a wonderful gift.
Instead of running out to purchase an extra toy for that eight month old (who clearly didn't need a thing), they asked if they could spend their regular gift money on a savings bond for her instead.
We were thrilled.
The temptation to buy an extra gift for those kiddos is all too easy (even when we know they don't need it!) And, while splurging on your kids is so much fun when they're little, it's amazing to consider what saving a few of those pennies could do to change their financial future.
Did you know that if you chose to invest just $50 today for your child, in thirty years that little $50 would turn into $872.50? (Assuming just a 10% annual rate of return?)
Now, that may not seem all that exciting, but what if you decided to invest $50 every year (4.16 per month) for the next thirty years . . .
Your total investment would be $1500, but in thirty years you'd have $9,905 in that little account.
Wow.
Now, let's just say you go really nuts, put it all out there, and decide to give up a meal or two out each month to add $50 to that account every single month for the next 30 years (that's $12.50 per week. I'm betting you can do that?)Â
That little $50 each month ~ maybe just two meals out a month ~ would come out to a ridiculous total of . . .
{Are you ready for this???}
$109,438.68.
For real.Â
Your total money invested would be $18,000, but you'd earn a whopping $91,000 in interest.
Craziness!
So, are you heading out Christmas shopping for that cute kiddo of yours today? 🙂
You might want to consider what pinching a few pennies instead could do to change the direction of their financial future. And, if you've not started investing yet for your own future, it's kind of fun to take a few minutes to consider what just a small investment can do.
Check out this investing calculator to see just how strong the power of investing is ~ I love that it allows you to see how adding just a few dollars each month has the power to completely change the direction of your long term financial goals!
Take a minute to step away from the hectic holiday hoopla and contact an investing Endorsed Local Provider. They’ll help you determine exactly how much money you’ll need for retirement, and guide you in choosing the best investment options for your family. You’ll get a chance to start planning for the future and an opportunity to focus on your family's long term financial goals.
Dave Ramsey’s Endorsed Local Provider program is also a great place to find tax help or a local real estate agent, or get insurance advice!
To get more information on how to invest wisely, click HERE and decide how to best plan for your family's financial future.  Spend a few minutes getting information on investments from someone who understands how investing works, and change the future of your family's finances today!
This is a sponsored by Dave Ramsey’s Endorsed Local Providers, however all opinions are my own.
I have to say this article is not correct. Just speaking from experience….I was given $25 savings bonds every year for my birthday for about 20 years. Here I am 37 and every year I take one to the bank once they have matured and cash them in….they are now worth somewhere around $150 if I’m lucky. It’s definitely not changing my financial future!! 🙂
I should have clarified in the post that it would need to be in another type of investment to get a better return, but just wanted to share how starting early can save so much! You couldn’t have a savings bond add up to that much, but there are definitely other investments that would add up to that. Hope that helps Clare!
I have to agree with the other ladies about savings bonds. Dave Ramsey will also tell you they are not a good investment.
You’re right Shirley – I should have clarified in the post that it would need to be in another type of investment to get a better return, but just wanted to share how starting early can save so much!
That is totally not correct! Savings Bonds just don't have that kind of turn around.
I should have clarified that in the post – you’re right Patti. A savings bond would never yield that much, but good investments could! Read more here http://www.daveramsey.com/blog/make-12-percent-returns-with-mutual-funds
I worked for a bank until I had to leave due to medical problems. If you regularly check with banks I have seen special rates as high as 7% for a 10 month CD. It was a special promotion but anyone could buy one. Just keep an ear out or make friends with your banker so they can call you for these great deals!
I am sorry but the ONLY inverstment option even CLOSE to 10% is the stock market. CD’s are 1/5 of the amount you are saying. Just an FYI
I should have clarified that in the post – you’re right Jodi. Definitely why it’s important to talk it over with an advisor who can help you find the best return on your money! Read more here http://www.daveramsey.com/blog/make-12-percent-returns-with-mutual-funds
And of course contact a local ELP for personalized information as well!