“Retirement, a time to do what you want to do, when you want to do it, where you want to do it, and, how you want to do it.”

Catherine Pulsifer

My kids overheard a conversation i was having regarding saving for early retirement and were intrigued, not about retiring, but about saving what for them is an insane amount of money. Since their earning potential was limited to washing the neighbor’s car, or mowing a lawn, I tried to show them how easy it would be to start small.

A small goal is all that you need, say $25 a week. I used the morning coffee their uncle buys every morning as an example. I also mentioned the lunch they each buy at school every day.

I mentioned that the coffee should be brewed at home and that they could pack a lunch and save all that cash. Easy math, $5 a day is $25 a week. They said that they saw my point but that my math was flawed as the ingredients had to be purchased. At least they saw my logic.

$25 a week is roughly $100 a month, $1,300 a year. That doesn’t seem like a lot and since a savings account is not the best option I found an IRA calculator and plugged in the numbers. $25 a week contributed from 18 to 65 adds up to more than $330,000. The light bulb was bright.

I had a captive audience. They wanted to know more. They heard all about 401Ks and IRAs. Sure there are many other tools out there, but a did not want to overwhelm them. The way things are right now who knows what the age of retirement will be for them. Hopefully they didn’t ask just to amuse me.

I am not a financial advisor. I hold no fancy degree and as such this is not financial advice.  This is simply what I have done and recommended my children do when the time comes.

 

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6 thoughts on “The $25 A Week Master Plan

  1. That’s great that you got your kids interested in saving money without having to preach to them. Getting kids started building their savings muscles early on is extremely important. You’re also helping to change their mindset. If they start looking at every expenditure with the glasses of “how much can I save and how much will this be worth is 30 years if I invest it”, they will be in amazing financial positions as grown ups.

    Liked by 1 person

  2. That’s great that you got your kids interested in saving money without having to preach to them. Getting kids started building their savings muscles early on is extremely important. You’re also helping to change their mindset. If they start looking at every expenditure with the glasses of “how much can I save and how much will this be worth is 30 years if I invest it”, they will be in amazing financial positions as grown ups.

    Liked by 1 person

  3. That’s great that you got your kids interested in saving money without having to preach to them. Getting kids started building their savings muscles early on is extremely important. You’re also helping to change their mindset. If they start looking at every expenditure with the glasses of “how much can I save and how much will this be worth is 30 years if I invest it”, they will be in amazing financial positions as grown ups.

    Like

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