How I Plan to Help My Newborn Build Wealth From Day One

We are expecting our daughter in December, and becoming a dad has made me think a lot about what I want to give her. Beyond love, time, and guidance, I want to give her something practical too: the knowledge, habits, and confidence to handle money well.

The goal is not to hand her a pile of cash or “make her a millionaire.” The goal is to give her a financial foundation and teach her how money works so she can create opportunities for herself throughout life.

Here is the simple plan we will use as a family to give her a massive head start.

Start Investing From Birth to Age 18

I will invest consistently for her from birth through age eighteen. After that, the investing is up to her.

I will use a taxable brokerage account in my name, not a custodial UTMA account. That gives us flexibility and control over when she accesses the money. I want the opportunity to teach her first, not hand over funds automatically at eighteen.

The point is not to save a huge amount. The point is to start early and let time do the heavy lifting. Here is what that can look like in real numbers.

How a Small Monthly Investment Can Grow Over a Lifetime

Parent contributes from birth through age 18, then stops. Investments continue compounding with no further deposits.

Monthly contribution: $100

Total contributed: about $21,600

Value at age 18: about $43,600

Value at age 60: about $1,366,800

Growth: about $1,345,200

Monthly contribution: $250

Total contributed: about $54,000

Value at age 18: about $109,000

Value at age 60: about $3,417,000

Growth: about $3,363,000

Monthly contribution: $500

Total contributed: about $108,000

Value at age 18: about $218,000

Value at age 60: about $6,834,000

Growth: about $6,726,000

This is not a promise. It is simply how compounding works when you start early and stay consistent. Notice how growth does almost all the work. That is the lesson.

Add a 529 Plan for Education Flexibility

We will also fund a 529 plan. If she chooses college or graduate school, that helps. If she chooses another path, current rules allow unused funds to roll to a Roth IRA over time and/or be transferred to her future siblings. Education planning should create options, not limits.

Introduce Work and a Roth IRA Later

When she is old enough to genuinely help in the business, she will earn real money. That allows her to open a Roth IRA. She will see what it means to earn, save, invest, and watch money grow. The Roth IRA is a tool and a lesson, not just a tax strategy.

The Most Important Piece: Teaching Her

I do not want her thinking money magically appears. I want her to learn:

• how to save consistently

• how to invest long term

• how to avoid lifestyle pressure

• how to use money as a tool for freedom

• how to build confidence and independence

The account balances matter less than the education and mindset behind them.

The Real Goal

I am not trying to fully fund her future. I am helping her build the first layer, and she can add to it when she is ready.

I want her to step into adulthood with:

• a foundation already built

• time on her side

• confidence around money

• the belief that she can build her own future

If she contributes even a little as she grows up, she will be decades ahead. If she does not, compounding is already in motion. Either way, she has options. That is the real gift.

Final Thought

A child does not need a fortune to start strong. They need time and education. Even $50-$100 per month can change their life if you start early and combine it with financial lessons that last.

If you want help building a similar plan for your family, reach out. Planning early is one of the best gifts you can give a child.

Disclaimer: This blog is for educational purposes only and does not constitute financial advice. Please consult with your attorney, advisor, tax professional, or mortgage lender before making a major purchase decision.