How to Help Make Your Baby a Millionaire (Seriously)

There’s no magic formula to guarantee millionaire status — but starting early with smart investments can set your child up for serious long-term wealth. Thanks to compound interest, even small amounts invested in their early years can grow into a seven-figure sum by retirement.

Here are five powerful (and practical) ways to get started:

1. Open a Custodial Investment Account

A custodial brokerage account (like a UGMA or UTMA) lets you invest in your child’s name while managing it until they’re 18 or 21.

📈 Example: Invest $1,000 at birth and add $200/month until age 21. If it earns an average 10% return, it could grow to $175,000+ — and several million by retirement with no additional contributions.

2. Use a 529 Plan for College — and Beyond

A 529 college savings plan grows tax-free when used for education. Thanks to recent rule changes, unused funds can now be rolled into a Roth IRA (up to $35,000), giving your child a jumpstart on retirement.

3. Start a Roth IRA When They Earn Income

Once your child starts making money — babysitting, lawn care, part-time work — you can open a custodial Roth IRA.

Why it’s powerful: Contributions grow tax-free for decades. Even small amounts invested in their teens could turn into hundreds of thousands by retirement.

4. Teach Money Skills Early

Millionaire habits start at home.

💡 Tips:

• Use jars for save, spend, and give

• Include them in simple budget talks

• Model smart financial behavior they can mirror

5. The Power of Compound Interest

The earlier you invest, the longer money has to grow. That’s the secret weapon.

💰 Example: Just $1,544 invested at birth could grow to over $1 million by retirement — even with no additional contributions — if left to compound at a strong rate.

Remember

You don’t need to be rich to set your child up for long-term success. Just start early, stay consistent, and let time and compound interest do the heavy lifting.