Friday, September 26th, 2008
Munny Journey: Keepsake Journal for Baby’s First Money
What happens when two financial planners get together to write a children’s book? Munny Journey.
On one level it’s a keepsake book for recording those precious moments that come once in a lifetime. You know…
- A photo of baby’s first coin bank.
- Baby’s first coins.
- Baby’s first dollar.
- Baby’s first financial gifts.
- Baby’s first bond.
- Baby’s first stock.
And the best of cherished memories… Mom and Dad record for posterity the levels of the Dow Industrial Average, NASDAQ and S&P 500 on their child’s date of birth. Ahh, sweet memories.
At this point you’re probably thinking, "This is absurd!" I did at first glance, but hold on a minute.
On another level, this book is really about educating parents. It aims to push parents to plan for their baby’s financial security. The thing is 96 pages with an audio CD too. Interspersed between the prompts for parents to record data are pages that explain stocks, bonds and so forth.
Here are a couple catchy quotes from author Brad Dugdale from the following interview video clip from PBS KCTS in Seattle, Washington:
"This book is about taking action. This is a road map for financial security so parents can embrace these concepts, execute the concepts and then sit there and monitor the results."
A recurring theme is the notion of creating a $1 million nest egg for your kid:
"We want kids to have a fiscal fair start. So if you deposited $5000 [at birth] and then saved a little over $100 a month, you can accumulate $100,000 by age 21. [...] If you save $1 a day and grow it at 9 percent interest for 65 years you can actually make any child a millionaire. So for about $30 a month you can make a child financially secure."
A lot of us don’t have $5,000 to set aside at birth, but the message is still clear. Make a point of setting aside savings every month for each of your children and explore ways to earn the most from it.
Watch the clip:
A second video from an ABC morning show may also be of interest (partially redundant at the beginning, then diverges a bit).
The author’s What’s My Number? page can be used to calculate how many times your money will grow when invested at an annual average interest rate until age 65. Of course, count on your kid spending that nest egg long before he’s 65-years-old, but still, with time on your side you can build quite a start for your child.