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Retirement Plans of a 11 year old :-)
Old 10-13-2015, 12:29 PM   #1
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Retirement Plans of a 11 year old :-)

This is story of youngest dreamer this board might have seen so Mom is the one sharing it. I'm a regular follower of ER & MoneyMustache forum. My 11 year old son checks out what I'm reading many times. I have shared lots of concepts with him like "Power of Compounding" , "Inflation" , "Stock Market" , "Frugality" etc. .

Right now here are main aspects of his plan :
* He is saving most of his allowance.
* He saves and banks all the cash gifts received.
* He earns and saves amount based on his academic achievements like getting ranks in National level competitions / Olympiads etc. .
* He is extremely careful about discretionary purchases and evaluates value for money before buying anything.
* He is on track to earn scholarship for remaining 6 years of school to get free education ( Decent amount in India). He negotiated to keep 60% and share 40% with parents since parents are to pay for education.
* He is seriously working to crack entrance exam for India's premier institute to maximize his earnings later and also earn a very lucrative incentive ( upto $150K ) if he does really well in the exam.
* He also intends to save most of the money allocated for his education fund by parents. Entry into premier institute also means less education expenses ( $25K for 4 years of Engineering degree)
* So once he starts with a decent Retirement savings (instead of student loan) when he starts working, he intends to save > 50-60% of his income and hopes to retire after 20-25 years of employment.

He would be open to doing some paid work to add to his kitty but opportunities for kids are just not there in India. Currently Mom is keeping track of his kitty and has a joint account with him in the bank so he at-least earns interest. Can't invest in stocks due to taxation rules.

Sometimes feel so silly talking about Retirement and all these financial concepts with him but mostly really proud. Just wanted to share.

-Desi Girl
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Old 10-13-2015, 12:50 PM   #2
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Great job, Mama. You've got quite the son, there.
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Old 10-13-2015, 12:56 PM   #3
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That is fantastic, you have a right to be a proud mama!
Now, if you can keep him from spending all that savings on girls when he's in his teens...
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Old 10-13-2015, 01:44 PM   #4
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Kudos to the OP's son, but I may have him beat at least in spirit.

One of my earliest memories is of starting Nursery School at age 4, and wistfully pining to be 3 again without all the new found pressures and schedule. While you might rightly conclude that I was being a bit of a drama queen even then I prefer to think I was sowing the seeds of my ER - just 50 years early.
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Old 10-13-2015, 01:49 PM   #5
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It's been too long, DesiGirl. I've missed your posts! Sounds like you have any mother's dream child there. You can be very proud of hm. Just remember to let him have some fun along the way.
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Old 10-13-2015, 02:46 PM   #6
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Originally Posted by Sarah in SC View Post
Now, if you can keep him from spending all that savings on girls when he's in his teens...
That, or fast machines, has been the downfall of many plans....

That's a Mom who should be proud!
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Old 10-13-2015, 02:55 PM   #7
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Fantastic. Wish all parents exposed their children to these ideas. In the U.S., we seem to have a very large percentage of kids that enter the "real world" with no concept of budgeting, savings for future, etc.... Good job to both mom and kid!
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Old 10-13-2015, 05:12 PM   #8
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aww, that's adorable and great. I wish I'd had that mindset before college, never mind when I was 11.
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Old 10-13-2015, 07:23 PM   #9
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Great kiddo! Good job.


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Old 10-13-2015, 10:34 PM   #10
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Thanks for your kind and positive words people.
Even though we live in a very conservative part of India where teenage dating is more of an exception than norm but we'll have to see how things go Sarah in SC.
Thanks Meadbh, have been busy with lot of things while continuing to work towards DH's retirement one step at a time. Will probably post current status update to get next round of opinion from smart people in the forum. Yes he should have fun along the way but as things are he enjoys lots of physical activity like playing cricket or hanging (loves to build upper body n grip strength), reading, movies, Kinect etc. so his hobbies are reasonably inexpensive. He is happy to wear 3-4 year old cloths . Having said that he is happy to donate some of his money for charities or lend using providers like "Kiva" so he is not very cheap just not very material.
I prioritized giving all these concepts to my kids because as we all know "n" or duration is the most important factor in compounding formula, unfortunately me or DH weren't exposed till much later even though we have always been prolific savers. Having said that my 14 year old is not that keen so I give him lot of credit for taking interest.

Thanks,
Desi Girl
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Old 10-14-2015, 07:12 AM   #11
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Fantastic. Wish all parents exposed their children to these ideas. In the U.S., we seem to have a very large percentage of kids that enter the "real world" with no concept of budgeting, savings for future, etc....
But everyone gets a trophy! And their self esteem is very high!
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Old 10-14-2015, 02:57 PM   #12
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But everyone gets a trophy! And their self esteem is very high!
And that will make them happy campers when they're camping under the bridge down by the river.
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Old 10-22-2015, 11:17 AM   #13
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You certainly should be proud, DesiGirl! Keep up all the good work (both of you!)
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