The $1,000 Challenge (or whatever number works for you)

piggy bank

Here’s how it works:

  1. Challenge your kids (grandkids, nephews, nieces, any young person you care about) to save a sum of money – say $1000.

  2. Set a target age – 16, 18, 24, 30 – and start from wherever you are right now.

  3. Tell them up front that if they save $1000 by age X you will match it and introduce them to your investor coach if they will invest that money into a Roth IRA where it will grow tax-free during their life time.

There are many positives to this challenge – for both of you and your loved ones:

  • It gives them skin in the game in a world that is promoting the idea of giving away everything.

  • It gives them a long-term focus. They have to put $1000 of hard earned money away for what will seem like forever.

  • It’s an extremely efficient way for them to save for retirement and for you to give an inheritance.

  • You will see that this way of “giving” is much more beneficial to all parties. Being generous is great, but giving them everything and not requiring them to work for it can be detrimental.

  • This $1000 plus your $1000 will likely be worth more than all of the money they earn in their 50s.

  • What you’re really doing is giving them life-long education as a reward for saving.

It’s a win for all involved.

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