Finance podcaster Jannese Torres is on a mission to make her 15-month-old daughter a millionaire by the time she turns 18. Through a combination of savings accounts, investments, and even a modeling fee, Torres has already accumulated roughly $13,000 for her child.
Growing Up Without Financial Knowledge
Torres, 40, host of the popular Yo Quiero Dinero podcast and author of Financially Lit!: The Modern Latina's Guide to Level Up Your Dinero & Become Financially Poderosa, grew up in a Puerto Rican family in New Jersey. She recalls that only the men in her family made financial decisions, while the women managed day-to-day budgets. Her parents' credit card debt in their 20s led to bankruptcy, instilling a fear of financial products in her.
A Different Path for Her Daughter
When Torres became a mother last year, she wanted to ensure her daughter had more options than she did. Her daughter's savings include a 529 college savings account, a brokerage investment account, and a Roth IRA. The Roth IRA is typically restricted to income-earners, but the toddler earns a $625 modeling fee for appearing in Torres's social media content. Torres estimates that by saving $2,000 per month for the next 17 years, her daughter will become a millionaire by age 18.
Overcoming Barriers to Saving
Torres acknowledges that many parents face barriers such as lack of awareness and the high cost of living. She suggests that even finding an extra $50 to $100 per month can make a difference. She emphasizes the power of compound interest and encourages parents to involve friends and family in contributing to 529 accounts. "This can be a group project," she says.
The Importance of Earning More
Torres believes that cutting expenses alone is not enough; earning extra income is key. She herself had a side hustle while working a corporate job, bringing in an extra $2,000 to $3,000 monthly. She recommends using gig economy platforms like Fiverr or Upwork to find freelance work.
Challenging Conventional Wisdom
Torres rejects the advice that one must be debt-free before investing. She argues that waiting to invest means missing out on time in the market, which is crucial for growth. She also warns against the fear of credit cards, noting that when used responsibly, they can build credit and offer rewards. Her daughter already has a credit score as an authorized user on Torres's card, which will help her secure an apartment in the future.
Teaching Financial Independence
Torres wants her daughter to know that women are just as capable as men in managing finances. She plans to teach her that money is a tool that follows instructions. By setting a strong example, Torres hopes to break the cycle of financial fear and empower the next generation.
