Jannese Torres, a finance podcaster and author, has a bold goal: to make her 15-month-old daughter a millionaire by the time she turns 18. Through a combination of savings accounts, investments, and even modeling fees from social media appearances, Torres has already accumulated roughly $13,000 for her child. She shares her strategies and insights on how other parents can set their kids up for financial success.
Breaking Generational Patterns
Growing up, Torres observed that financial decisions in her family were dominated by men, while women handled daily budgets. This dynamic, coupled with her parents' bankruptcy due to credit card debt, instilled a fear of financial products. Now, as a mother, Torres is determined to change that narrative. 'My whole goal is making sure that she has as many options as possible, because I didn't have that for myself,' she said.
The Millionaire Plan
Torres estimates that if she saves $2,000 per month for the next 17 years, her daughter will become a millionaire by age 18. Currently, the toddler has funds in a 529 college savings account, a brokerage account, and a Roth IRA. The Roth IRA, typically restricted to income-earners, is funded through a $625 modeling fee she earns when featured in Torres's social media content. Torres emphasizes that even small contributions can make a difference. 'Even finding an extra $50 to $100 a month to put into one of these accounts can feel super prohibitive, but something is better than nothing,' she said.
Overcoming Barriers
Torres identifies lack of awareness as a major barrier for parents. She advises using 529 accounts not just for college but also for technical school, trade school, or even rolling over up to $35,000 into an IRA. She also highlights the power of community contributions, noting that friends and family can contribute to a 529 account, making it a 'group project.'
Earning More, Not Just Saving
Torres believes that earning extra income is more effective than cutting expenses. She herself maintained a side hustle while working a corporate job, bringing in an extra $2,000 to $3,000 monthly. She encourages parents to explore gig economy platforms like Fiverr or Upwork to supplement their income.
Challenging Conventional Wisdom
Torres pushes back against common advice such as avoiding credit cards or waiting until debt-free to invest. She advocates for using credit cards responsibly to build credit and earn rewards, and for investing even while carrying student loans or mortgages. 'If you wait until you're debt free to invest, you'll probably never start,' she warned.
Lessons for the Next Generation
Torres is determined to teach her daughter that women are equally capable of managing finances and building wealth. She wants her to view money as a tool that can be directed to achieve positive outcomes. 'I'll teach her how to use money as a tool, and to know that money doesn't do anything you don't tell it to do,' she said.
