From Yahoo Finance: 2025-05-11 08:04:00

Starting a family or expanding brings excitement, but preparing for your child’s financial future is crucial. Financial planning early on can set them up for success and build generational wealth. A 529 plan helps with college expenses, and the SECURE 2.0 Act allows rolling over unused funds into a Roth IRA tax-free.

Setting up a savings account for your child can lead to significant growth over time. Consistent savings with a 4% yield can result in nearly $18,000 by age 18. Investing in stocks early on can also build generational wealth, potentially reaching over $100,000 by high school graduation with a 7% return.

Teaching financial literacy is essential for your children’s future success. Starting the money conversation early and instilling good money habits can help them manage money responsibly. The lessons you teach now will have a long-lasting impact on their financial well-being.

Read more: 4 Ways To Start Building Generational Wealth for Your New Baby