When it comes to teaching kids about money, the most important lesson might be this: you don’t have to wait. According to West Virginia University Extension, financial education should begin early – often before your child fully understands what money is.
The good news? You don’t need a complex curriculum to start. A few simple habits can build a foundation that lasts a lifetime – and eventually translate into real-world financial confidence.
Why Early Financial Habits Matter
Research shows that children form basic money habits by the time they’re 7 years old. That includes concepts like delayed gratification, budgeting, and the value of saving. By including children in conversations about money, setting age-appropriate savings goals, and offering small allowances tied to chores or effort, parents can help their children build a healthy relationship with money from day one.
Simple tools like transparent jars, visual savings charts, or even goal trackers are all easy ways to help children connect their actions with results.
But what happens after the “save your allowance” stage?
From Saving to Growing: The Next Step
Saving is the first habit. But as your child gets older – and their needs become more complex – it’s also important to show them how money can grow. That’s where investing comes in.
Instead of only using a basic savings account that earns little to no interest, consider introducing a more flexible, long-term option: a UTMA (Uniform Transfers to Minors Act) custodial account.
What is a UTMA Account?
A UTMA account is a custodial investment account held for the benefit of a minor. Unlike savings accounts, UTMA accounts can be invested, giving the money potential to grow over time. And unlike 529 college savings plans, UTMA funds can be used for a wide variety of expenses – not just education.
That means your child can use the funds for:
- Summer programs
- A first car
- Career training or trade school
- A laptop or tech tools
- Or even launching a small business
The best part? You can start small. Just $25/month invested consistently over time can make a meaningful difference by the time your child reaches adulthood.
How UNest Supports Financial Growth
UNest makes it simple to open and manage a UTMA account tailored to your child’s future. You don’t need to be a financial expert – just a parent ready to start a consistent habit.
With UNest, you can:
- Start investing with as little as $25/month
- Automate contributions to stay on track
- Access a user-friendly app to monitor progress
- Invite friends and family to contribute through a custom gift link
You’re Not Just Saving – You’re Teaching
When you start saving and investing for your child, you’re doing more than building a fund. You’re showing them what long-term planning looks like. You’re helping them develop confidence, patience, and a belief in their own future.
They might not understand compound interest yet – but they’ll understand that you cared enough to plan ahead.
✅ Ready to begin?
Start building healthy financial habits and long-term flexibility for your child – without overthinking it.
