Why Care?
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The financial decisions made for children in their first decade — and the habits modeled by parents — have a compounding effect on their financial lives for 70+ years.
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Starting a custodial investment account or 529 plan at birth gives compound interest its maximum runway. $5,000 invested at birth, growing at 8%, becomes approximately $160,000 by age 65.
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Financial literacy begins at home, not in school. Most schools teach little or no personal finance. Parents who introduce age-appropriate money concepts give their children a lifelong advantage.
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Estate planning with children in mind is critical. A will, guardian designations, and life insurance are not optional once you have dependents.
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Modeling healthy financial behavior matters more than any formal lesson. Children who see parents budget, save, and discuss money openly develop healthier financial instincts.
Top Tips:
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Open a 529 plan at birth. Even $50/month invested over 18 years grows substantially. State tax deductions often make contributions even more efficient.
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Consider a custodial brokerage account (UGMA/UTMA). Contributions aren't tax-deductible, but the account grows in the child's name and can be used for any purpose.
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Start allowance with structure. An allowance teaches that money comes from work and decisions about how to use it.
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Open a kids' savings account around age 6–8. Watching a balance grow makes saving concrete and real for young children.
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Introduce the 'spend, save, give' concept. Simple three-jar systems teach children to allocate money with intention from an early age.
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Review your life insurance and will. If something happens to you, your child needs financial security and a designated guardian. This is non-negotiable.