Her daughter had recently turned one when Sydney mum Erin Miller decided it was time to start the process of buying her a house of her own.
Ever since then she has been putting money aside each week for a potential deposit, hoping one-day it will be enough for her.
Now six years old, her daughter Harper has $10,000 and Ms Miller is doing the same thing for her son Beau, 4.
The mum of two is not alone. New figures have revealed investment accounts for kids are surging, with many parents like Ms Miller saying it’s to help them save for housing as adults.
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Investment platform Raiz Invest reported a 45 per cent jump in the number of accounts registered for children in the last 18 months.
The sharpest spike in the country is concentrated in Sydney’s southwest where there was a recorded 60 per cent increase in kids accounts.
Erin Miller started investing in shares when her daughter Harper was still a baby. Picture: Supplied.
Ms Miller, who lives in Wilton in Sydney’s southwest, said a financial planner had suggested opening an investment portfolio in Harper’s name, which she said is “kind of like set and forget”.
“It’s obviously not something that you’re taught, but I think it’s something that’s really valuable,” Ms Miller said.
She said she checks it “all the time” even though there’s a lot she doesn’t know about investing.
Ms Miller puts away $25 a week so it stays affordable even if she changes jobs or takes time off. Pictured with son, Beau. Picture: Supplied.
Ms Miller said she was originally putting aside money into a normal bank account.
“(Our financial planner) suggested that I open up an (investment) account and transfer the money there and then just start making weekly deposits,” Ms Miller said.
“We would grow the money faster (that way) but obviously, there’s more risk involved.
“I purposefully did what we could afford and not notice, because I think I wanted it to be something that even while I was changing jobs or working part-time or working casually, that I could afford,” she said.
Ms Miller hopes her kids will use their investment accounts for a house deposit when they’re older. Picture: Brendan Radke
Ms Miller said she hopes her kids put the savings towards a house deposit but what she decides to do will depend on who her kids become as adults.
“I’m hoping to kind of educate them and encourage them to use it, I guess wisely and kind of take them along the journey as they get a little bit older,” Ms Miller said.
“It’s kind of one of those things I want to see what my kids’ personalities are like with money and things like that to kind of be able to hand it over kind of stress-free,” she said.
Ms Miller stressed it was something everyone could do, saying she wasn’t high-income and “it can be $5, like I just think it’s so powerful”.
Raiz Invest CEO Craig Keary has worked in finance since the 1980s when it was common for buying shares to be limited to the ultra-wealthy who could afford a pricey commission.
Craig Keary has been working in financial services since the 80s and is now the CEO of Raiz Invest. Picture: Supplied
Mr Keary said it was really encouraging to see people recognise what the future might hold for their kids and take action by investing.
“I think money used to be something that wasn’t spoken about within the family but I’ve seen that dynamic completely change,” he said.
“We’re really seeing (older generations) go, ‘okay, it’s going to be different for our kids or grandkids, and how do we set them up well with the right guidance?’,” he said.
He said he thinks that if people are “really open” with financial discussions and get kids involved in the process, it can help build crucial financial literacy skills needed in adulthood.
Grandparents and parents play a critical role in developing kids financial literacy. Photo: Tertius Pickard
Mr Keary said the key thing is to be disciplined and invest regularly using a long-term outlook.
The earlier someone starts investing, the more the “power” of compounding returns can “actually have a material impact over many years”, according to Mr Keary.
“But then finally, if you know you’re on your way to achieving your goals, you actually have less sort of stress in your life,” he said.
“As long as you can see you’re making progress, you’ll feel a lot better about yourself,” he said.
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