Six easy steps to help your 20-something kid build long-term wealth

Many people regret not investing money during their younger years to build up their wealth.

The Money Show looks at how to help your 20-something child build an investment portfolio that will help them reach financial independence 'one day'.

It's the same conversation we actually have for the rest of our lives, says Benguela Global Fund Managers' Grant Nader.

'The sooner we get our heads around it, the better.'

If you're lucky enough to have a job as a young adult, it doesn't take that much and it isn't that complicated.

"We always feel that we don't have enough to save, or we can't save enough to matter, and I think the first thing to teach the youngsters is that time is your friend."

Grant Nader, Portfolio Manager - Benguela Global Fund Managers

"Einstein called the magic of compounding 'the seventh wonder of the world' and what it means is the longer you have your money invested for, the more money you can make without doing anything."

Grant Nader, Portfolio Manager - Benguela Global Fund Managers

NADER'S MUST-DO TIPS:

1. Start Small, Start Now

They don’t need thousands. Just R200–R300 a month is enough.

Time is their biggest asset — the earlier they start, the more their money can grow.

2. Set a Goal

Is it for travel, a car, or a home deposit?

Knowing why they’re investing keeps them focused and makes it feel real.

3. Budget for It

Use the simple 50/30/20 rule: 50% needs, 30% wants, 20% savings/investments

4. Use Easy Platforms

Help them sign up on beginner-friendly apps like EasyEquities, SatrixNOW, or Shyft.

Start with ETFs - they’re affordable and low-risk.

5. Automate It

Set a monthly debit order.

No stress, no forgetting - the money just goes in and grows.

6. Celebrate Progress

Even a tiny dividend is a win.

Keep cheering them on and share tips or podcasts to learn more.

Let your young adult kids see you investing too, Nader says.

Show them you're walking the talk - whether it’s your retirement fund, property, or stocks.

To listen to the expert's detailed advice, scroll back up to the audio player

For more insight and updates on the ever-changing world of investing, make sure you tune in to Investment School, brought to you by CFI, every Thursday on The Money Show with Stephen Grootes (6pm-8pm).

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