by Mercedus Long

Created on: April 30, 2010   Last Updated: May 02, 2010

We all wonder what our children are going to be when they are all grown up. What will they look like and what kind of person will they be? We carry in our hearts a dream of a child who is successful in their professional and personal life. That they will be happy and smart and well rounded. What many of us hope for yet take little time to plan for that blissful child is their financial future.

As we struggle over our own finances we often do not think of that little bundle of joy and what we can do to brighten their financial picture. However, the sooner we think of this, the sooner our child can grow up financially sound.

1. One of the first ways we can help our newborn child to become a millionaire is to think of more than health insurance. Now understand that early health coverage will make a huge difference in what your child is eligible for in the future. Simply because they presumably have no pre-existing conditions that will drive prices sky high. Lack of insurance or inadequate insurance can make or break your child later.

This is the same school of thought that should be taken when considering something such as life insurance. Many people assume that newborns do not necessarily need much more than a burial policy. This is not true, companies such as Gerber have whole life policies that give your child $10,000 in the beginning and then doubles when your child reaches a certain age. This is beneficial for your baby as it protects their ability to be covered by life insurance regardless of whether they develop asthma or juvenile diabetes later in life. Both conditions can make your child ineligible for certain policies if you wait.

2. Saving money in your child's name is another great way to secure your infant's financial future. We all know the statistics that tell us that if we need to save so much money every year, to be able to retire in comfort. Take the same school of thought for your newborn. Open a savings account in your child's name and commit to depositing at least $50 a month until your child starts working. After that have your child give you the money to put in the account for them. Bank accounts can be opened previously to a child's birth and their name added on afterwards.

($50+1.10%)*12=$606.60

$606.00*18=$10918.80

Explanation: $50 a month at a 1.10% interest rate for 12 months equals $606.60. If you multiply $606.60 by 18 years you will have $10918.80.

*These numbers are based on the current interest rate with a ING savings account.

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