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Your Money Guide on the Side

How to Make Your Child Absurdly Wealthy for Absurdly Little

Your Money Guide on the Side

Tyler Gardner

Business, Education, Entrepreneurship, Investing, How To

4.92.4K Ratings

🗓️ 16 March 2026

⏱️ 52 minutes

🧾️ Download transcript

Summary

As always, a MASSIVE thank you to this week's sponsors: LMNT: regardless of who much money you have, if you're not feeling your best physically and mentally, it means very little. That's why I drink LMNT daily (well, multiple times a day) to continue to be as productive as I can be after my workouts. Try drinklmnt.com/tyler today and let me know what your favorite flavor is! Copilot Money: if you are looking for one of the most well-designed money apps out there, check out Copilot Money today. My friends and family continue to rave about it, and they now have all of their money needs in one place. Check out try.copilot.money/tyler today and use code TYLER2 for two free months, so you can see if it works for you! Facet: find out why I have been endorsing Facet for over 18 months now by checking out facet.com/tyler. They are a one-stop shop for financial planning, investment management, tax strategy, and retirement planning. And best part: it's all for one flat annual membership fee. Check out facet.com/tyler and see if they're the right fit for you! And on to the show notes! Many parents want to help their kids financially — but often focus on the wrong things. Saving for a wedding, helping with a down payment, or paying for grad school can help in the moment. But the biggest advantage you can give a child financially is time. In this episode, Tyler breaks down how investing small amounts early in a child’s life can turn into millions thanks to compound growth — and walks through the most practical ways parents can do it. In this episode, Tyler covers: How investing $3,000 per year for a decade could grow into millions over a lifetime The power of giving a child 20–30 extra years of compounding How UGMA/UTMA accounts work and their tax implications Why a custodial Roth IRA can create completely tax-free retirement wealth A lesser-known strategy: investing in your own brokerage account and passing assets down with a step-up in basis Why 529 plans are useful — but often overhyped and less flexible The key takeaway: when it comes to investing for your kids, starting early matters far more than the amount you invest. Even small, consistent contributions can grow into life-changing sums over decades. If this episode helped clarify your approach to investing for your family, consider leaving a quick review on Apple Podcasts or Spotify — it helps others find the show.

Transcript

Click on a timestamp to play from that location

0:00.0

Open the account, automate contributions, invest in growth, and leave it alone.

0:04.0

Early similar to what we talk about doing with our own accounts.

0:08.0

Do that, and your kid will have millions of dollars by the time they retire.

0:12.0

Not because you paid for everything, but because you gave them 20 extra years of compounding that they can never get back.

0:20.0

Hello, friends, this is Tyler Gardner, welcoming you to another episode of compounding that they can never get back.

0:25.8

Hello, friends. This is Tyler Gardner, welcoming you to another episode of your Money Guide on the Side, where it is my job to simplify what seems complex, add nuance to what

0:31.5

seems simple, and learn from and alongside some of the brightest minds in money, finance, and

0:37.4

investing.

0:38.2

So let's get started and get you one step closer to where you need to be.

0:43.3

Welcome back to another episode of your Money Guide on the Side.

0:47.3

Today we're revisiting one of the most popular episodes we've ever done,

0:51.8

how to help your kid become a millionaire, or a multi-multi-millionaire

0:56.5

for very little. Last year's episode on this topic was one of the most listened to in 2025,

1:03.6

and the number one question I got wasn't, is this real? Or are you exaggerating? It was,

1:10.6

wait a minute. How big is that final number? And I get it.

1:15.6

Because when you hear that contributing $3,000 a year for a decade can turn into $3.6 million

1:24.0

by the time your kid is 65, it kind of sounds like financial clickbait. But I assure you,

1:30.3

it's not. I don't play that game. It's basic math. It's compounding over 55 years. That's 55 years

1:38.7

of growth you can't replicate if you wait until they're 20 to start. And when we tend to think about investing

1:45.1

and compound interest, we also usually think about our own timeline. If you're 30, you've got 35

1:50.8

years until retirement. If you're 40, you've got 25. But if you start investing for your kid at birth,

1:58.3

they've got 65 years. That's 20 to 30 extra years of compounding you will never,

...

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