by Lisa Beach

Created on: March 30, 2009

What would you say if I told you there were strategies you could use to help your child acquire real wealth before [s]he even turned eighteen? That when [s]he DID, there would be enough of his/her OWN money to pay for college? Would you be interested, or call me a liar and move on?

Well I have 5 tips for you that will do what I say: help your kids acquire real wealth. They are simple strategies, easy to use, and can be implemented by anyone. They can even be tweaked by families that can't use all the tips:

1.) A clever tax deduction: Do you own a small business? Whether run from your home or another location, "hire" your kids to work there. Write them out paychecks for their work, as you would for any employee, so the IRS will see they are working for you in earnest, and not just as a half-hearted attempt that you as a business owner really do not understand.

A home-based business is excellent for smaller kids, although you must keep in mind that they are to EARN what you pay them. They don't have to know what a paycheck is: just make sure you are up-to-date on the labor laws for kids, and the amount of time they are allowed to work.

Having your child [or children] work for you as an employee gives you lots of deductions at Tax Time you wouldn't ordinarily have.

2.) Open a bank account: Find out the minimum requirement for opening an account in your child's name, and do so once your child has acquired enough money in pay. The interest the account accrues can be used as the first, easiest tool for teaching the child about money. Just think of it as "Saving Money 101".

3.) Investments: Along with the saving's account, there are basic investments you can use for the child's future. Bank CD'S and IRA accounts allowed by the government are a couple of safe investment avenues. The interest never diminishes, and again, teaches the child about monetary responsibility. No matter his or her age, the child will sense or know there is something grown up about what is happening, whether [s]he knows what a paycheck is or not. You as parent should give the child as much information as the child asks about.

4.) A special strategy: Have your child start a business of his or her own. This is easier than it sounds. If your child has real talent with a computer, look into buying Web Design software; web design is hot, hot, hot these days, with no end in sight, and Web Design is a job that is recession proof. Companies will always want a store online, because the Internet makes money.

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