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
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
