Imagine this: a parent starts investing just $100 a month for their newborn. By the time that child turns 21, thanks to the power of compound interest, they already have a portfolio worth tens of thousands of dollars—without lifting a finger. If the child continues the habit into adulthood, it could grow into millions by the time they retire.
That’s the magic of starting early. And as a parent, you have the chance to create this future for your child. Here’s how you can set them on the path to becoming a millionaire.
1. Teach Them About Money Early
Children mirror what they see. If you talk openly about money—saving, spending, and investing—they’ll naturally pick up those habits.
- Explain the difference between needs and wants.
- Show them how to save a portion of their allowance or gift money.
- Celebrate when they make smart money choices, like waiting before buying something.
2. Harness the Power of Compounding
The earlier money is invested, the more time it has to grow. Even small amounts can become huge over decades.
- Open a 529 College Savings Plan for future education costs. You can open 529 College Savings Plan under your name and transfer to your newborn.
- If your child has earned income, consider a Custodial Roth IRA. Currently our child has a Poshmark and KidArtShow accounts.
- Use a Custodial Brokerage Account to invest in low-cost index funds or ETFs. We recommend open up a Vanguard and/or Fidelity account.
Help your child explore small business ideas—lemonade stands, babysitting, selling crafts, or even coding projects. These ventures teach responsibility, problem-solving, and how to turn ideas into income. Many millionaires started with simple childhood businesses that taught them the value of hustle. During the summer, we setup a lemonade stand with friends.
4. Build Smart Money Habits
Being wealthy isn’t only about earning; it’s about keeping and growing what you earn. Teach your child to:
- Save before spending.
- Track their money with a simple journal or app.
- Practice delayed gratification.
5. Model the Behavior You Want Them to Learn
Children mirror what they see. If they observe you saving, budgeting, investing, and avoiding debt traps, they’ll adopt those behaviors too. Your actions are the most powerful financial lesson you can provide. Get a head start with creating credit for your child by adding your child as an authorized user.
Children mirror what they see. If they observe you saving, budgeting, investing, and avoiding debt traps, they’ll adopt those behaviors too. Your actions are the most powerful financial lesson you can provide. Get a head start with creating credit for your child by adding your child as an authorized user.
Building wealth for your child isn’t about handing them money—it’s about equipping them with the knowledge, tools, and mindset to grow it themselves. With early financial education, smart investments, and strong money habits, your child could be on track to reach millionaire status in adulthood.
The earlier you start, the greater the payoff. After all, wealth isn’t built overnight—it’s built every day with the right choices.
Disclaimer: This blog post is for educational and motivational purposes only. Financial success depends on many factors, and results may vary. Always consult with a qualified financial advisor before making investment decisions.
