A FINANCIAL expert has revealed the money saving tips you need to know to make your kid a millionaire.
It could be as easy as simply putting £5.50 aside in a pension fund every day until your child reaches the age of ten.
Over time and due to compound interest and tax breaks, the money will grow and grow.
Rob Gardner, 39, says that if you put the sum aside every day from the day they are born until your child reaches the age of 10, this can grow into a £1million pension pot by the time they reach 65.
The £5.50 is essentially the same as contributing £6.88 a day due to tax breaks.
By the time the child reaches 10 years old, the pot will have grown by £50 a week, or £2,500 a year – making a total of £25,000.
With the help of wise investments, the pension pot could have grown to between £35,000 to £40,000 by that stage.
If simply left alone, this pot will roughly double every decade due to compound interest, growing to a million by the time your child is 65.
Mr Gardner, who is chief executive of pensions consultancy firm Redington, has described the money saving tip as the “one thing” parents should leave their children.
