3 Fastest Ways to Make Your Kids Millionaires
If you want your kids to have financial freedom, this is for you.
Maybe you want them to graduate without debt.
Maybe you want them to have choices—real, life-changing choices.
Or maybe you just want to give them the head start you never had.
Whatever your reason, these three strategies can turn your kids into millionaires by the time they’re 65.
And no, it doesn’t take a trust fund.
We ran some calculations on three options with a 10% rate of return. Here’s what it looks like:
Option 1: Taxable Brokerage Plan
Start with $1,000 at birth. Add $100 a month. Then toss in $250 on birthdays and Christmas.
The result?
By the time your child turns 65, they’ll have $7.6 million.
(Yes, really. That’s the power of a 10% annual return.)
Here’s why this works. A taxable brokerage account is flexible. No restrictions. No waiting until retirement.
You’re in control. You manage the account, decide how it’s used, and teach your kids about money.
Rules to remember:
You’ll pay taxes on dividends and gains, but choosing low-cost index funds or ETFs with low turnover helps minimize this.
The best part? You’re not just building wealth—you’re building habits.
Option 2: UGMA Account
What if you want to gift money directly to your child?
Here’s how it works:
Invest $100 a month from birth to 65.
At age 65, that’s $7.7 million.
UGMA accounts put money in your child’s name. It’s their financial foundation—whether it’s for college, a home, or their dreams.
But there’s a catch. Once your child turns 18 (or 21 in some states), the money is theirs. Full control. Full responsibility.
So, teach them how to manage it wisely. This account isn’t just a gift—it’s a lesson.
Option 3: Custodial Roth IRA
Want to teach your kids about earning and saving? A Custodial Roth IRA is your secret weapon.
Here’s the plan:
Start contributing $200 a month when they earn income (let’s say at age 8).
Contribute until they’re 18.
By 65, that’s $4.4 million, tax-free.
Why this is a game-changer:
Contributions grow tax-free, and withdrawals in retirement are also tax-free.
It’s the ultimate retirement account.
Rules to remember:
Your child needs earned income to qualify. Babysitting, dog walking, or a part-time job—it all counts.
Contributions are limited to their earned income or the annual limit ($6,500 in 2025).
With a Custodial Roth IRA, you’re not just helping them save—you’re teaching them the value of hard work and the magic of compound interest.
So, what’s the plan?
Want flexibility? Go with the Taxable Brokerage Plan.
Want to lock in a gift? The UGMA Account has your back.
Want to teach financial independence? The Custodial Roth IRA wins every time.
The most important step? Start now. Compound interest waits for no one.
Which one will you choose for your kids?
