The Best First Investments for Kids (And How I’m Building Generational Wealth for My Daughter)

When I was growing up, no one handed me a roadmap to building wealth. My parents weren’t investors. They didn’t leave me any inheritance. I worked two jobs through college and took out student loans to make it work. But one thing I knew early on: I didn’t want to pass that same financial struggle down to my kids.

Now I’m 35, with a six-year-old daughter—and my perspective has shifted. I don’t just want to build wealth for myself. I want to build it for her, and with her.

💸 The First Step: A 529 College Savings Plan

I started by opening a 529 plan when she was still in diapers. We contribute about $500 a month, which adds up fast. By the time she’s ready for college, that fund should be able to cover the cost of any four-year university—public or private.

To put that in perspective:

• I paid $28,000 to attend a state school.
• My wife paid just $12,000 in-state.
• Today, many top colleges cost $60,000+ per year—and rising.

If she decides to go, she’ll have options. If she doesn’t, the funds can be redirected (with a few tax tweaks) toward her future children, or even toward her own graduate education.

📈 The Second Step: A Personal Investment Account (Just for Her)

The 529 is great—but it’s my account, with her name on it. So I also opened something else: a custodial investment account. This is a regular brokerage account in her name, with me as the custodian. It’s not just about college. It’s about learning to invest.

She knows the basics already:

• You buy a piece of a company (or a whole bunch of them through an index fund).
• That money can grow over time.
• You can use your money to make more money.

We keep it simple. Mostly total stock market ETFs. Sometimes she’ll ask to invest in a brand she knows (like LEGO or Disney), and we talk about what makes a company valuable.

She gets to see her money grow. And soon, she’ll be old enough to help decide where to invest more of it.

🌱 Teaching Her to Think Long-Term

This isn’t just about a few thousand dollars in an account. It’s about setting the foundation for something bigger.

My dream is that one day she’ll take over managing our family’s investments—and then pass them on to her own kids. I want her to think in terms of decades, not days. I want her to understand how wealth can be used to give you freedom—not just stuff.

One of the most influential books I’ve ever read is “Family Wealth” by James E. Hughes Jr. It changed how I think about money, legacy, and what it really means to build something that lasts.

That’s the goal: not just to leave her money, but to leave her with the knowledge, responsibility, and mindset to grow it.

🛠 How to Start an Investment Account for Your Own Kid

If you’re thinking about doing something similar, here’s what I’d recommend:

1. Open a 529 plan — Every state has one. I used mine through my preferred brokerage. Contributions grow tax-free and can be used for qualified education expenses.
2. Set up a custodial brokerage account (UGMA or UTMA) — You can do this through places like Schwab, Fidelity, or Vanguard. Just pick one and start with $10 if that’s all you’ve got.
3. Invest in a total stock market index fund — Keep it simple. No need to gamble.
4. Talk to your kids about what you’re doing — Even little kids understand the concept of “growing your money.”

🧭 What This Is Really About

I started from nothing. I’ve worked hard to grow my net worth to over $1 million by age 35. But more important than any dollar amount is this: I’m trying to build a generational wealth fund—something that starts now, not when I’m gone.

And hopefully, one day, my daughter will do the same for hers.