This week, The Simple Dollar is conducting a detailed review of Kevin McKinley’s Make Your Kid A Millionaire. This title focuses on the role parents play in building a net worth for their child, both financially and psychologically. Does this book provide some interesting insights, or is it merely a repeat of the power of compound interest? This week, we aim to find out.
Make Your Kid A Millionaire is a guide for parents who are thinking about investing for their child’s future, whether it be for their education, for buying a home, for making their life easier, or even for their retirement. The book attempts to address children of all ages, but works hard to convince people to start early so the power of compound interest works in their favor.
The language of the book is very conversational, making it an easy read. One could read this book in little nibbles over a month or two, or swallow it down all at once in a few hours. Many of the basic concepts are shown in various different lights so that they really sink in no matter what stage the reader or the reader’s child is at.
Another useful attribute of Make Your Kid A Millionaire is that McKinley has broken down most of the concepts into ordered lists, many of which serve as step-by-step action plans. A great example of this appears in the book’s introduction, where McKinley lays out an ordered list of ten things you need to know, each with a couple paragraphs of description. Here’s that list, for a sample of the book’s content:
1. Time is your best friend.
2. Procrastination is your worst enemy.
3. Without a foundation, the structure crumbles.
4. A watched pot never boils, and a watched stock never doubles.
5. Wealth equals freedom.
6. We are what we are, not what we have.
7. Money is a tool, not a weapon.
8. The second-greatest gift. (with the greatest being love)
9. It’s easier to spend less than it is to make more.
10. People get rich slowly.
The purpose of this list is (obviously) to get a parent in the proper mindset to invest for their child’s future, but it also reveals many of the principles of the book: slow and steady wins the race, money is just a tool to have more time, and time works in your favor so you should get started early.
Tomorrow, we’ll cover Kevin McKinley’s advice on the prebirth to six years stage of life. In following days, we’ll look at his advice for the six to thirteen year age frame, then for older children, then on Friday I’ll give a buy or don’t buy recommendation for this book. Don’t miss it!
You can jump quickly to the other parts of this review of Make Your Kid A Millionaire using these links:
Prebirth Through 6 Years
Ages Seven to Twelve
Age Thirteen to Adulthood
Buy or Don’t Buy?
Make Your Kid A Millionaire is the fourth of fifty-two books in The Simple Dollar’s series 52 Personal Finance Books in 52 Weeks.