Who wants their kid to be a millionaire?

OK, that's you and you, and you over there slouching over the keyboard, and you, sir, in front of that screen and you -- yes, you, ma'am -- the one fiddling with the mouse. And, well, every parent, naturally.

Believe it or not, it's easy and relatively painless to put your tyke into the seven-figure club one sunny day in the future by seeding their retirement fund early and letting time and interest do the rest.

Maybe you don't retire to a life of leisure in the sun, but maybe they do.

You might pay young Molly an annual wage of $2,000 to handle bulk mail projects or some other necessary work for your business that she puts into her own Roth IRA between ages 10 and 20. If the money grows at an annual rate of 10 percent, Molly can expect to receive $1,375,000 at age 59 1/2 for all those hours spent licking stamps. But make sure you keep detailed employee records in case the IRS comes calling.

Or the grandparents might make an annual exclusion gift of $10,000 into a tax-deferred annuity paying 8 percent at Junior's birth and not put another dime into it. When Junior retires at age 65, he's got a cool $1,487,798 waiting for him.

Do-it-yourself kids
Say your kid is the do-it-yourself type? Great. If thrifty Michael tucks away $2,000 a year into a Roth IRA earning 8 percent beginning with his first job at age 16, he can look forward to a $1,147,540 birthday present at age 65.

Lynn Ferraina, a certified financial planner with Ciccarelli Advisory Services Inc., of Naples, Fla., says parents may want to seed an annuity or IRA for their child's retirement while using a money market account to build toward life's short-term goals.

"A lot of people like mutual funds because they can use it for a first car, a wedding or college tuition. It's accessible," she says. "Plus, you pay the taxes as you go along. I prefer mutual funds for people who have less than $250,000 to invest."

Some fortunes will naturally grow faster than others. The key is starting early, at birth or before, and letting the fund accrue untouched until the clothes you're wearing now come back into style.

Raising Donald Trump
Of course, there's more to life than money in the autumn years. Before they get to that stage, your children can close in on millionaire status by being whizzes at managing what they themselves make along the way.

The sooner you steer your young ones onto the path to fiscal responsibility, the better, according to Stephanie Gallagher, author of Money Secrets the Pros Don't Want You to Know and Fabulous Bargains.

Good habits should begin with your child's first brush with money management -- the allowance.

"I think it's important that you pay a set allowance at the same time every week, and you don't pay for grades or chores," she says. "Then, I recommend taking money off the top for investing, preferably 10 percent at least, and you give them a choice as to where they put it. You may want to start out with a savings account at the local bank with a passbook so they can see the money add up."

Maybe have them join a savings club and learn the financial discipline it takes to get that bike or computer game they're after. And as they get better at it, let them in on the inside story about CDs, money market accounts and other ways to earn the best interest on their money.

Games kids can play
Once your child masters the art of the allowance deal, you might gently steer them toward money games. Sure, good old Monopoly might have been fine for "The Donald," but today's interactive kids will reap more from Internet sites such as Edustock where they can have fun while learning the fundamentals of money management.

"You don't have to pay anything to play the game, and if you do, it's not a good game," Gallagher notes. "You sign on and get a stake, you buy a portfolio and at the end of the game period the one with the most money wins. It's a great way for everybody to learn about managing stocks."

Students can also join in stock market simulation games that are increasingly popular in schools.

Investing in the shallow end
Once your budding tycoon is comfortable with the basics, consider helping them put some real cash to work with their knowledge of Wall Street. There are brokerages that offer special programs for youngsters, or you can open a small account for them. By law minors need an adult's consent to open an account and start trading.

Gallagher recommends the Young Investor Fund from Stein Roe, a kid-oriented fund that features a low $50 monthly minimum and offers investment options in kid-friendly companies. Tip: Parents can avoid the $1,000 minimum on a custodial account by signing on for the automatic investment plan with $100 minimum to open and $50 per month thereafter.

"What I like about the Young Investor Fund is all of the fund material is written for kids," says Gallagher. "You get your prospectus, your statements, your shareholder proxies, the annual report -- and they're all explained at an elementary-school level."

The old school way
A college education will put your child in the best position for optimum earning power. If you want to help your kid become a millionaire, put some money aside for college tuition now.

"I am a big believer in state-sponsored tuition and savings programs," Gallagher admits. "Many of the plans now are not state-specific, they let you go to school anywhere, and they let you invest in mutual funds, although by law you cannot choose the funds yourself. Many of them are federally tax-deferred and/or tax-free."

Then there are educational IRAs. Set one up in the little guy's name and when he's old enough he can take some of it out with no tax penalty to pay for specific college needs.

Making it by hard work and free agency
There are even more direct ways to help the young 'uns get there the old-fashioned way: through their own hard work. (This is the one you've been waiting for, right?)

If you lack the money today to land your kid on Easy Street, you can do them an invaluable service by helping them acquire the survival instincts for business in the new millennium.

Bruce Tulgan, president of Rainmaker Thinking Inc., of New Haven, Conn., helps businesses recruit and retain young professionals in the new marketplace. Tulgan says the employee of tomorrow will not be a company man, but instead an enlightened, empowered free agent.

"It used to be that the dominant model of success was to hitch your wagon to a star of an established organization, pay your dues and climb the ladder. Dues-paying and loyalty were rewarded with job security," Tulgan explains. "But in today's environment, because organizations have to be very, very flexible and respond to shifts in the marketplace, individuals need to be able to fend for themselves."

Parents can best help their child prepare for the new workplace by instilling three survival instincts:

• Build marketable skills faster than they become obsolete.
• Build loyalties with other individuals who can help you.
• Constantly be collecting proof of your ability to add value. This involves creating tangible results and making sure they bear your name.

Free agent thinking is the only logical response to the new business paradigm, says Tulgan.

The new loyalty
"Loyalty to institutions is on its deathbed because it's very hard to be loyal to an institution whose organizational imperative is to be flexible, because you might be the thing that needs to be flexed out. But that doesn't mean that loyalty is dead. Loyalty between and among individuals is very, very important."

Ultimately, your child's job security may depend on how valuable and adaptable they are -- and having the portfolio to prove it.

"Parents should teach kids to be very strategic learners and very voracious learners. Nowadays, it's less important what you know and more important how you learn," says Tulgan. "Teach them to approach relationships in terms of what you have to offer instead of what you need or want. Teach them to under-promise and over-deliver."

And, as one wit suggests, if all that doesn't work consider one of the oldest shortcuts to really big money -- a good matchmaker.

Jay MacDonald is a freelance writer based in Florida

--Updated: Oct.1, 2002