Recommendation
preface.
Build your child's financial independence with early preparation.

Chapter 1.
How to make 500 million won in seed money with 300,000 won per month

We can get a hint from the Jewish Bar Mitzvah.
If you save 300,000 won a month, how much will you have in 20 years?
In the "Rich Equation," time is more important than seed money.
Start with the intention of planting a tree for your child.

Chapter 2.
Start saving and building up seed money now

If you have a child, be sure to get the subsidy.
Reduce your current expenses and create future savings.
Please put your child's money in his/her account from the beginning.

Chapter 3.
Where should I create an account?

What about a children's savings account?
Safe deposits, can you lose money?

Chapter 4.
Understanding the Returns and Risks of Investment

Is investing always risky?
Expected returns from investments and Warren Buffett's returns
You need to know what the risks are so you can deal with them.

Chapter 5.
Correcting Preconceptions That Ruin Investments

Misconception 1.
Invest in blue chip stocks for the long term
Misconception 2.
Dividend stock investment is safe
Misconception 3.
You need to know the theme stocks to make money.
Misconception 4.
If you invest in US stocks for 10 years, you will definitely make a lot of money.
Misconception 5.
Securities firms' KOSPI forecasts are reliable.
Misconception 6.
An inversion of short-term and long-term interest rates signals a recession.

Chapter 6.
Benefits of Asset Allocation and Portfolio Creation

Why not just join a children's fund?
If you invest, invest in the market.
Minimum Asset Allocation, the Jewish Rule of Thirds
How should I divide my assets to get the best results?
Which ETFs should I buy by asset class?
The K-All Weather Portfolio: Overcoming All Economic Situations

Chapter 7.
Open a securities account and start investing

Creating a securities account in your parents' name
Creating a securities account in your child's name
Investing in small amounts with asset allocation
How to Rebalance Your Asset Allocation

Chapter 8.
Report a gift

If you deposit money into a child's account, be sure to report the gift.
Use the automatic gift tax calculator
Self-report your gift tax on Hometax.
If you deposit a fixed amount every month, you can reduce gift tax like this.

Chapter 9.
Generate additional income with tax-saving accounts

Make the most of tax-saving accounts to increase your profits.

Chapter 10.
Any other questions you may have

Which is better, installment savings or lump sum savings?
What if an adult child continues to roll over his or her retirement savings account?
How should I teach my child financial education?

supplement.
Introducing the Children/Youth Financial Education Site
References

The secret to 'magic money rolling' for my child is 'time'. 5 minutes once a month is enough.
Let our children's future shine like a jewel, blossoming with the magic of welfare!

There is no one who does not know the adage, 'Time is equal for everyone.'
However, there is a slightly different story between an individual using his or her time well and 'money' using time.
You may have heard the saying, 'Let your money work for you.'
If we apply the concept of compound interest to money, it means that money grows like a snowball over time.
The most important concept here is 'time'.
The magic in "Magic Money Rolling for My Child" is in the timing.
Let's look at how important it is to start investing for your child as early as possible.
Assuming an annual return of 7.2% and investing 300,000 won per month, the following results are obtained.


After 5 years, the principal amount paid was 18 million won | Account balance was 21.59 million won
After 20 years, the principal amount paid was 72 million won | Account balance was 156.67 million won
After 35 years, the principal amount paid was 126 million won | Account balance was 539.95 million won

In this way, when investing, time and returns are more important than the 'size of seed money'.
As the time axis increases, the effect of compound interest is maximized.
This book presents a 'realistic and concrete' method to create 500 million won by investing 300,000 won per month.
You can do this with a 5-minute investment once a month.
It is presented as is so that you can create a portfolio that can withstand long-term volatility while generating stable returns.
That means, all you have to do is follow along.
However, increasing investment returns is not easy and has limitations.
However, anyone can achieve and challenge themselves to earn 5-10% returns through asset allocation investments.


Parents have absolutely no need to feel sorry or regretful about not being able to provide a large sum of money for their children right now.
Rather, let's apologize for not starting to save money for our children a little earlier.
If you are carrying a child, or if you have given birth and are raising a child, it is important to start investing right away to secure as long an investment period as possible.
It's never too late.
Before time flies and the child grows up, creating a 'long hill' for the little snowball to roll down is something any parent can do.


How to Save Money by Taking Advantage of Gift Tax Deductions for Minor Children
The magic of having 2.5 billion won if your adult child manages it until he or she is 55 years old, and 5.2 billion won if he or she manages it until he or she is 65 years old

If you have just had a child or are raising a child in kindergarten or elementary school, you may think it is too early to even think about 'gifting'.
The key here is the ‘gift tax.’
From the time a child is born until the child turns 10, you can gift up to 20 million won, another 20 million won 10 years later until the child becomes an adult, and up to 50 million won after the child becomes an adult, for a total of 90 million won without paying gift tax.
Additionally, there is a system that allows children to postpone the 15.4% tax on capital gains when they open and manage a pension savings fund account until they receive their pension.
You can continue to roll over the money that would otherwise be paid out as taxes, which further increases the compounding effect and even allows you to benefit from low tax rates.
It is important to remember that the actual tax imposed is only about 5.5% to 3.3%, making a huge difference.
What if an adult child inherits the bankbook and continues to manage it? By the time the child reaches middle age, the amount could grow to 2.5 billion won.
The 'seed money' provided by parents rolls into a bigger snowball, and ends up with a considerable amount of money.
In this age of 100-year life expectancy, if you roll over your savings until your child's retirement, it will exceed 5 billion won.
Even if you take inflation into account, a large sum of money, say, several billion won, can be a tremendous help to your child as he or she navigates the world.


Time may seem slow, but it can also pass very quickly.
As your children become adults, it's time to consider giving them gifts, regardless of the amount.
"Magic Money Management for My Child" helps you prepare in advance not only for investing for your children but also for gift tax issues.
We've made it so that even people who don't know much about investing or are worried about investing can easily follow along.
However, in reality, there are many parents who are struggling with tight living expenses and cannot afford to worry about anything else due to the burden of caring for their young children.
Still, we have to go to the trouble of planting a 'small tree for my child'.
Let's start now, even if it means putting in the effort to water and care for the tree occasionally.
Then, as time passes, you will be able to bear fruit later.
It's a simple truth, but just remember that sometimes a parent's small actions can provide a solid foundation for their child's future.
As a parent, the easy thing to do is run to the bank right now.
This book is the best gift for children and parents.
I hope we can all dream of a secure future together, where everyone becomes a rich father.


The latest edition of bestselling author Kim Seong-il's "The Magic of Money Management" trilogy, Money Management for Children.

Any parent with even the slightest interest in investing has likely heard of a book titled "The Magic Money Roll."
It became a bestseller in economics and management, and the second book, "How to Manage Money," which focused on pensions, gained even greater popularity among the public.
Kim Seong-il, author of "Magic Money Management for My Child," worked at a state-run bank for over 20 years and also served as CIO (Chief Investment Officer) at an investment advisory firm.
At home, he is a father of two children and like any other ordinary parent, he worries about his children's future.
He studied and applied various investment methods and became an expert in 'asset allocation portfolio investment'.
I am actually achieving meaningful returns through asset allocation, and I am continuously sharing this on my blog.
Author Kim Seong-il says that asset allocation investment is a method that can be managed consistently over the long term without being diligent.
I've received a lot of inquiries from people around me about investment methods for children and parents, and I hope this book will provide answers to parents around the world who share the same concerns.