Recently, I met with my financial advisor to do some “routine maintenance” on our IRA and retirement accounts. As we discussed different options and outcomes, I was reminded of a few basic principles that make investing work the amazing way that it does. And I couldn’t help but realize that those same principles if applied to parenting, work much the same way.
As parents, we’re making investments whether we realize it or not, and one day, there will be a return. I don’t know of anyone who invests in hopes of someday losing it all, but it mostly depends on making the wise choices.
Here are three principles that will help you yield a better return on your investment:
1. The earlier you start, the better your return
When I was in college, a few of our professors strongly encouraged us as students to start investing in a Roth IRA in our early 20’s, because if we started young, we would be able to retire comfortably with no problem.
And the facts speak for themselves. The younger you start, the more that compound interest plays in your favor. And if you’re getting a late start, the best time to start is now.
This is so very true when it comes to raising children. Parents who realize that they are molding and shaping the character and worldview of their child from the youngest age are light-years ahead of those who don’t. A child’s worldview is already taking shape by the age of 2, therefore, it’s never too early to start teaching and training.
What you do or fail to do with your children when they’re young will either set you up for future success or failure as a parent.
Don’t fall into the trap of thinking that, “Well, they’re just young, so it really doesn’t matter yet.”
- “They’re just young, so it’s not that big of a deal if we miss church.”
- “They’re just young, so they won’t remember those things they’ve seen and heard in our home or on those movies.”
- “They’re just young, so what they eat and watch and who they hang around isn’t really going to hurt them.”
Let’s be honest with ourselves. How many times have our two or three-year-old said something they heard that we didn’t even realize they had paid attention to?
In order to get the maximum return, you’ve got to start early on your investment.
2. It’s not always the amount you invest, but the consistency of your investment
I don’t put any massive amounts of money into my IRAs, but I do follow the advice I’ve been given to be consistent regardless of the amount if I want the desired outcome.
Parenting effectively is like putting drops in a bucket over 18 years’ time. Each drop looks almost insignificant by itself, but every single one causes a ripple and the bucket would never get filled without them.
Far too many parents fall into the trap of thinking that it’s not quantity time that matters as much as it is quality time. But the reality it this – no amount of quality time, no matter how good it is, can make up for lost quantity time. Expensive gifts and trips to Disney Land cannot make up for the days of our child’s life that we have chosen to miss or waste without making any investment.
Deut. 6:6-9 is very clear that parents are to be active on an ongoing daily basis in the rearing and nurturing process of their children’s lives. We are to be investors into their lives when we sit in our house, when we walk by the way, when we lie down, and when we rise up.
Andy Andrews said this, “Our goal is not to raise great kids. Our goal is to raise great adults.”
Parenting is a long-term investment, which means we have to think long-term. And long term investments aren’t always convenient, but they’re always worth it.
It’s not easy to set aside a monthly amount to invest, but I discipline myself to do it anyway because I have the desired end in mind. Likewise, it’s not always easy to put the daily drops into the bucket of my children’s lives, but the consequence of failing to do so is far greater than I can afford.
3. It’s nearly impossible to make up for lost time
For every year a person procrastinates making investments, the cost of their delay becomes even greater to ever be able to recover from.
For example… The person who invests $5,000 a year starting at age 20 will have approximately $2,000,000 at age 65. However, the person who starts investing at age 33 will have to invest over $14,000 a year to achieve the same results by age 65. (Compound Interest Chart)
13 years truly makes a huge difference.
As parents, we mistakenly think:
- “I can start doing family devotions when I have more time.”
- “My schedule just won’t allow me to spend one-on-one time with my kids right now, but I’ll do it later.”
- “There’s always tomorrow.”
But the costs of delaying are greater than we might ever realize. I’ve never heard of a parent who said they spent too much time with their kids growing up, but I’ve spoken to many a parent who wished they’d have intentionally invested more when they still had the chance. Don’t be that parent 5, 10, or 15 years from now.
The greatest window of opportunity for “compound interest” on the investment of your child’s life is found between the ages of 1-13. You only get about a dozen years to maximize your investment, because these are the years when worldview is formed. By the age of 13, a child’s worldview is almost entirely set in stone.
Dr. Henry Cloud said that “Parenting is the only relationship designed by God that has an end to it.”
All of us get approximately the same amount of time to make our investments. And one day, that time comes to an end. Parent with the end in mind. (Prov. 22:6)
Before you prioritize something over your family and specifically your kids, consider the cost. Saying no to something else of lesser value today doesn’t have to mean saying no to it forever. It may just mean that you are wise right now at making the investments that matter the most.
While making up for lost time is very difficult, it’s never too late. Even if you’re getting a later than desired start with your kids, the best time to start is right now.
Consider what George Barna said in his book, Transforming Children into Spiritual Champions – “The research reinforces one simple but profound truth over and over again: if you want to have a lasting influence upon the world, you must invest in people’s lives; and if you want to maximize that investment, then you must invest in those people while they are young… If you connect with children today, effectively teaching them biblical principles and foundations from the start, then you will see the fruit of that effort blossom for decades to come. The more diligent we are in these efforts, the more prodigious a harvest we will reap.”
What kind of investments have you been making lately?
