3 ways to invest for your kids (and why you should)
Here's how to gift your kids $133,000+ when they turn 25.
With the cost of living getting higher and higher and house prices always rising, you might be wondering what you can do now to help your kids later on.
Finder's Wealth Building Report found 44% of parents invested on behalf of their kids in 2025, but only 15% of parents are investing regularly which is key to building long-term wealth.
For example, if you invest $10,000 as a lump sum when your child is born, it'd be worth around $54,274 when they turn 25 (based on an average 7% p.a. return).
But if you made that lump sum and then also added $100 per month, it'd be worth 3 times more at $133,021 instead.
Here are 3 ways you can get started investing for youtr kids (you can even choose to do a combination of all 3!).
1. Open a children's savings account
You can open a savings account for your child when they're born, and it can be in either their own name or in your name as the account signatory until they're older.
There are a few benefits of a savings account for kids. First, they're fee free. There are no account keeping fees, establishment fees or ongoing deposit fees to worry about.
They're also very low-risk, so you're not going to lose any money, ever. While the interest rate will change over the years, you'll never go backwards (like you could with most other investments).
You can make deposits as often as you like, and other people can also contribute (for example grandparents, Aunts and Uncles can make deposits into the account themselves).
Want to open a savings account for your child?
Compare kids savings accounts now.
2. Invest in shares for your child
The sharemarket offers one of the best opportunities to build long-term wealth for your children.
In particular, exchange traded funds (ETFs) offer a great way to invest in hundreds of shares with one trade and for a low cost.
You can choose to buy shares (and/or ETFs) using your own share trading account and then hold them on your child's behalf.
Or you can open a new account that lists you as the trustee on behalf of a child. Depending on the platform you use, these accounts are usually called minor, custodial or trust accounts.
Once your child turns 18, you can have these shares transferred to an account in their name.
Ready to get started?
Learn how to buy shares for kids.
3. Invest in your own superannuation
Another great way to build long-term wealth for your kids is by making extra contributions to your own super fund.
You can do this with the intention of gifting your kids a certain amount of money once you've turned 65 and can access your super tax free.
Yes, you can open a super account for your child and make contributions there directly - but they won't be able to access it until they're at least 65.
But if you invest in your own super instead, your kids will probably be in their late 20s or early 30s when you can access it (a time in their lives when they'd really benefit from some extra cash!).
Making extra contributions to your super also has tax benefits for you, as contributions in usper are taxed at a reduced rate compoared to your standard income.
Want to add extra to your super?
See the different ways to make super contributions.
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