HOW TO BUILD A MILLIONAIRE CHILD

SEMINAR RECAP ON THE TREASURED ENTREPRENEURS ASSOCIATION TEA HALL OF WEALTH FREE GROUP 1,2 & 3 AS WELL AS TREASURED ENTREPRENEURS ASSOCIATION TEA HALL OF WEALTH PREMIUM GROUP…

👉🏻Theme:

❤ FINANCIAL LITERACY FOR CHILDREN, POVERTY ALLEVIATION AND ERADICATION.

💚 HOW TO BUILD A ‘MILLIONAIRE CHILD’ BEFORE ATTAINING THE AGE OF 30 BY INVESTING IN BONDS, SHARES, STOCKS AND FIXED DEPOSITS ON THEIR BEHALF.

🎤SPEAKER/FACILITATOR/DISCUSSANT

🗣 Engineer Gboyega Kadiri….

Good evening, gentlemen and ladies.
I have the pleasure to be here again this evening to present the topic: HOW TO BUILD A ‘MILLIONAIRE CHILD’ BEFORE ATTAINING THE AGE OF 30 BY INVESTING IN BONDS, SHARES, STOCKS AND FIXED DEPOSITS ON THEIR BEHALF.

This topic is so germane especially with the geometric rate of poverty increase.
Before I go into the topic proper, I wish to salute the hardworking TEA executives members led by our very own able general overseer Mr. Asuni Adeshola for the thoughtful seminars and the purposeful leadership. Remain blessed sir.
It is no longer news that Nigeria has slided into becoming the poverty capital of the world.
More than 83 million Nigerians are currently living below the national poverty line, according to the National Bureau of Statistics (NBS).
The NBS said with the value of the poverty line set at N137,430 per person per year, individuals living in households whose per capita annual consumption expenditure is below the threshold are regarded as poor by national standards.
Add unemployment to the morass. There are few challenges worse than waking up in the morning with no place to go. This is the reality of about three out of 10 Nigerians who are willing and ready to work but can’t find a job. As bad as that sounds, it does not include the under-employed or those in disguised unemployment. Nigerians are suffering, with anecdotal evidence showing that most Nigerians are two or three paychecks away from destitution
The impact of covid-19 has further worsened the situation.
It disclosed that the economic impact of the COVID-19 pandemic had caused an astronomic rise in unemployment to 33.6 per cent, indicating that about 39.4 million people would be unemployed by the end of 2020 if nothing proactive could be done to arrest the situation.

Now that we are in it already, how do we save to safe our children?
First of all, it is super important to teach children money management than it is to save or invest for them. Giving a young adult ,who has no idea how to handle it, money, is like giving a toddler a lighter and a keg of petrol. 
“ Someone’s sitting in the shade today because someone planted a tree a long time ago,” said the famous, billionaire investor Warren Buffett.
To your children, you’re the tree that provides and protects. How you manage your money today will directly impact your children’s finances in the future. Therefore, it is imperative that you think deeply about financial planning for your children.

INVESTING IN BONDS

Bonds are fixed income instruments issued by entities to raise funds. Bonds are simply a term for loans that you give to the Federal Government, State Government, Companies etc.
Bond issuers (borrowers like the government) typically pay a fixed income to the bond holder.
These income payments are known as coupons and bonds which pay coupons twice a year are known as semi-annual coupon bonds. There are also bonds that make coupon payments annually, known as annual coupon bonds. Bonds which make no coupon payments are called zero coupon bonds, or deep discount bonds. In making a decision to buy a bond, investors should consider a number of factors such as the tenure of the bond, the coupon payments expressed as a single percentage rate, and the yield-to-maturity or just simply, yield. 
Coupon is basically interest rates attached to the Bonds issues. For example, the Government can issue a bond for say N10b, 10year bonds at a coupon of 6%pa. What they mean is that they want to borrow N10b from the public and are willing to pay 6% interest rate for it per annum for a period of 10years.
Usually they pay you the principal amount at maturity meaning at the end of 10years and sometimes they can have the option to “call back” which basically means the can pay you the principal before the 10 year period. They pay you N600 per annum and pay you the N10k a the end of 10 years. Or at the end of the ten years, you shall have N16,000, which is a 60% gain.
Why not do this for your child?
In making a decision to buy a bond, investors should consider a number of factors such as the tenure of the bond, the coupon payments expressed as a single percentage rate, and the yield-to-maturity or just simply, yield. 

2. Shares, stock or Equities

A stock is a unit of a share of a company that is traded on the floor of the Nigerian Stock Exchange (NSE). It is also often referred to as a share.
Shares are units of a company sold to investors. You invest in equities by buying units of shares of a company listed on the stock exchange
Besides capital gain, annual dividend payment (which a lot of people ignore) is a way of earning returns as a shareholder. The more shares you own, the more dividend you’ll receive.
I’ll put this in perspective, Zenith bank recently declared a dividend of N2.50k per share. This implies that if you own 100,000 units of Zenith bank shares you’ll get N250,000 in dividends. Now imagine if you own 1,000,000 units of this same company.
Equities are known to be one of the most profitable asset class, they are also popular for being risky, as shareholders bear the brunt of falling share prices and company bankruptcy. Effective monitoring and management of an equity portfolio are central to being a successful investor in shares.
Children, generally, have long investment time-frames.
Given the fact that equities are most ideal for long term investors, they are best for children. It is common knowledge that stocks give the best return over a long period of time.
They have been known to give the best returns over time. The only challenge is that investing in Shares is a bit technical. You have to be able to identify the right companies to invest in, and also know the right entry and exit price. Once again, consult an investment expert if you do not understand how to invest in shares.

3. FIXED DEPOSIT ACCOUNT

A Fixed Deposit is the safest and most secure investment option.It offers a steady, assured return on investment in the form of interest. The principal amount can be withdrawn easily on maturity. Fixed Deposit is a safe bet for the cautious investor having a low-risk appetite. It is not subject to market fluctuations and yields a fixed and regular interest during its term.
Why to Invest in Child Fixed Deposit Plans?
Child Fixed Deposit plans are amongst the more popular child investment plans. This saving plan for children will fulfil educational, marriage, and other entrepreneurial dreams and aspirations of your kids and give them a secure future. An early Fixed Deposit in the name of your child will bring you immense mental peace. Every renewal of the deposit made will grow the corpus amount substantially.
Fixed Deposit for kids can be made even when they are just 1 year old. The minimum amount of deposit is small and not burdensome to set aside.
Opening a fixed deposit for your kid as soon as he /she is born is a great way to take advantage of the power of compounding. The higher number of years will give a greater chance of compounding the principal amount or monthly deposits. Compounding adds interest on interest and the principal amount usually quarterly. For a child who will use this amount only when he’s 17 or 18 years of age, this time period can result in a substantial amount which can hopefully suffice for both education and marriage

There are many more ways to invest for your child’s future like real estate and taking up an insurance plan.
Please note that insurance is not an investment, it is a protection against loss. But it is necessary to have proper insurance cover as a parent.
Finally, remember to take action on time and do not dely. Also, do not put all your eggs in one basket, try different investment methods with the advice of your financial expert.
If these are done, by the special grace of God, your children will already be multi-millionaires even before the age of 30 years.

Thanks for your rapt attention.
It was my pleasure.