The simplest way to make your child a millionaire is to give them a £1 coin every day for million days. They put it in a piggy bank and when they reach their 2,739th birthday they'll have a million pounds. Easy. The other way is to save and invest in a sensible, coherent fashion from the day your child is born. Either way you need to take the long-term view. But with our plan there's a chance they may see the cash before they've been dead for more than two and a half thousand years.
Part 1. Grab the free cash from the Government and get going
If your child was born after 1 September 2002 and is entitled to Child Benefit then they're also entitled to a voucher - a Child Trust Fund voucher - of £250 at birth plus a £250 top-up at seven, both double if you're on a low income. In the scheme of all things millionaire it's not much but it's a start and often that's all you need.
The route to the first million really begins with the fact that once invested - and you've got to choose the stocks and shares option for this - you and your family can top up the account to the tune of £1,200 a year, returns are tax-free and the kid can't touch it till they're 18. Child Benefit, if you can afford to invest it, is nearly £1,000 a year. Do all this and, assuming an achievable annual return of 6%, after a mere 6,570 days (18 years), your child has £40,025.57. Wow.
Your lunchtime reading
>> Everything you could possibly want to know about Child Trust Funds
(it's all there)
>> 'Where I invested mine'
>> 'He's only two but he'll be keeping me in the lap of luxury'
(worth a quick read if you're unsure of the benefits)
'Yeah but my child is six already and missed the voucher, can I catch up?'
>> Of course you can. You'll need to invest a bit more a month and read these:
>> 12-year plan for a six-year old (note: still sound advice but fund tips are a little dated)
>> Must-read guide to saving for children
>> Fund tips (Up-to-date fund tips from top advisers)
>> Check out indvidual fund performance
>> Buy funds at the discount supermarket
>> Expert answers from investment experts
Make your child a millionaire
Part 1 0-£40,025
Part 2 £40k-£500k
Part 3 £500k-£1m
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