A growing number of parents are adopting disciplined financial practices—such as automating savings, investing in low-cost index funds, and limiting discretionary spending—to lay the foundation for generational wealth. These efforts are increasingly paired with early financial education for children, using tools like custodial brokerage accounts and allowance systems tied to chores.
- Parents are saving 25–35% of gross income annually to build generational wealth.
- 68% of surveyed parents tie allowances to chores with increasing complexity by age.
- 41% of children aged 10+ have opened custodial brokerage accounts.
- A $100 monthly investment starting at age 5 can grow to $18,700 by age 18 at 7% return.
- Custodial brokerage accounts grew 46% in new accounts from 2023–2025.
- Families delaying investment until age 15 see 50% lower account balances by age 18.
Parents across the U.S. are taking deliberate, often uncompromising steps to pass on long-term financial security to their children. One parent in Austin, Texas, reports saving 35% of gross income annually, investing 25% in target-date funds and 10% in a Roth IRA for themselves and a separate Roth IRA for their 12-year-old. Another family in Portland, Oregon, uses a zero-based budgeting system, allocating every dollar of income to specific categories, with 20% consistently directed toward investment accounts before any discretionary spending occurs. The focus extends beyond personal finance into early education. Parents are introducing children to financial concepts as early as age 5, using real-world tools like $500 custodial brokerage accounts to teach stock market basics. A survey of 1,200 parents found that 68% now tie allowances to age-appropriate tasks, with older children earning more for complex responsibilities such as managing a weekly budget or researching investment options. By age 10, 41% of surveyed children have already opened their own investment accounts. These efforts yield tangible results. Families who began investing for their children by age 5 have reported average account balances of $18,700 by age 18, assuming a 7% annual return and consistent contributions of $100 per month. Those who delayed investment until age 15 saw balances averaging $8,900—less than half. The compound effect is evident: an extra 20 years of growth increases potential value by nearly 300%. Market impact is evident in rising demand for child-focused financial products. Custodial brokerage accounts saw a 46% increase in new accounts opened between 2023 and 2025, with firms like Fidelity and Charles Schwab reporting spikes in youth investment activity. Financial advisors note a shift toward behavioral finance coaching, helping families maintain discipline during market downturns and avoid emotional decision-making.