Building Your Kids Financial Future
Every parent wants to set up their kid for financial success —but let’s be real, “just save your money” isn’t cutting it. If you want to give your child a head start, you need to think bigger. We’re talking real investments, compound growth, and financial habits that will set them up for life. Let’s break it down.
Start Early: The Ultimate Cheat Code
There’s one major advantage kids have: time. The earlier you start, the bigger the payoff. Imagine this—if you invest $5,000 when your kid is born, earning an average of 8% per year, by the time they turn 18, it’s about $20,000. If they leave it untouched until retirement? Boom—over $500,000. And that’s without adding another cent.
The Move: Open a custodial brokerage account or a 529 plan and start funneling in money. Even $25/month makes a massive difference long-term.
Best Accounts for Kids’ Investments
Not all investment accounts are created equal. The right one depends on your goals:
529 College Savings Plan – Grows tax-free for education.
Custodial Brokerage Account (UTMA/UGMA) – Gives them access to investments when they reach adulthood.
Roth IRA for Kids – Perfect if they have earned income (great for teens with side gigs).
High-Yield Savings Account – Not a big growth play, but a solid tool for teaching money habits.
What to Invest In: Playing the Long Game
Skip the meme stocks and day-trading dreams—this is about long-term, wealth-building moves:
Index Funds (S&P 500, Total Market Funds) – Low-cost, diversified, and historically strong.
Blue-Chip Stocks – Think Apple, Microsoft, or companies that aren’t going anywhere.
Dividend Stocks – These reinvest earnings, compounding wealth over time.
Crypto? – Maybe. High risk, high reward. If you go this route, keep it a tiny slice of the portfolio.
Teach Them the Game Early
A fat investment account means nothing if your kid has no clue how money works. Here’s how to make them financially literate before they leave the house:
Saving vs. Spending – Give them an allowance and let them manage it.
Earning Money – Encourage side hustles, small jobs, or even reselling sneakers.
Investing Basics – Show them how their money grows. Even better, let them pick a few stocks and track their progress.
The Bottom Line
It’s not about giving your kid an inheritance—it’s about teaching them how to build wealth. With the right accounts, investments, and mindset, they won’t just be set for the future—they’ll know how to grow their money for life. Start today on your kids financial future.
Want a strategy tailored to your family’s goals? Halter Ferguson Financial can help—schedule a consultation today.