How To Make Your Child a Millionare

According to a book by author Alan Oscroft, you can make your child a millionaire by investing in the stock market from the time they are born.

The book, published by The Motley Fool, advises that by investing 200 per month into the stock market, your child would have savings of over 1,000,000 by the time they are 35 years old, and over 6,000,000 by the time they are 50!

In the newspapers there is lots of controversy over the stock market, with many people thinking it too risky. However, the book quotes a study published at the time that showed that for every ten-year period since 1900, the stock markets overall performance had been better than bank accounts 92% of the time.

On average the stock market has grown at around 12% annually since 1918, which compares to savings in the bank or building society of around 6%.

If this money were invested in the bank account, the return at 35 would be around 250,000. The extra 6% of growth between the stock market and the bank, together with compounded returns would allow you child to be a millionaire before they were middle aged!

Sadly, the book is out of print now, but second hand copies are available through the usual outlets.