When I turned 18, I was very, very far from being a millionaire. And with banks offering me credit cards on my 18th birthday – along with student loans – I got even further away, very quickly.

I was not handed a big savings account, and like many, I had to teach myself financial literacy and investing – knowledge that came much later in life. I don’t have children, but if I did, this would be the one thing I didn’t have, that I’d want for them.

I imagine welcoming a child into the world fills the mind with dreams for their future. What if one of those dreams is to give them a powerful foundation right from the start – one that multiplies their opportunities by the time they turn 18? With discipline, planning, and the power of compounding, turning your child into a millionaire isn't just possible – it's achievable.

A step-by-step plan to millionaire status

Albert Einstein called compound interest the eighth wonder of the world, and for good reason. With compounding, your returns generate their own returns – exponential growth. A single $10,000 investment earning 10% annually grows to over $55,600 in 18 years. But the path to a million dollars isn't just about investment returns – it's about what you can control.

1. Create a dedicated long-term portfolio

To maximise returns over an 18-year period while keeping your strategy simple, you can focus on a well-diversified portfolio of exchange-traded funds, or ETFs (like any of our General Investing portfolios). By sticking to a portfolio of ETFs, you get significantly lower expense ratios compared to mutual funds and exposure to thousands of securities across multiple regions and sectors.

2. Contribute consistently

While you can't control market returns, you can control how much and how regularly you invest. Start by investing whatever amount you can, then focus on regular contributions, adding $1,500–$2,000 a month to the portfolio. Automated transfers on our platform make this streamlined, and take out the “heavy lifting” of staying disciplined, even for busy parents.

This is where the potential for growth skyrockets – contributing $1,800 monthly to an initial $10,000 grows the portfolio to almost $1.1 million in 18 years, assuming a 10% yearly growth.

For volatile markets, dollar-cost averaging helps smooth out your entry points – you can keep your funds in a cash management portfolio, and set up frequent recurring transfers from there (our Simple™ portfolios work great for this). The point is to get your money in the market sooner, rather than later.

3. Review periodically

Markets will naturally fluctuate, but a strong strategy can weather any storm with the right adjustments. Consider making your child's birthday an annual financial check-in: a time to review the portfolio, rebalance allocations, and reassess risk (after the birthday cake and presents, of course – I’m we're not suggesting you replace party games with portfolio charts!). As your child grows, you can gradually shift to more conservative investments, especially leading up to their 18th birthday.

While your strategy should remain steady, life can be unpredictable – whether it's market downturns or unexpected expenses – so you’ll have to stay flexible enough to adjust your plan and contributions when circumstances change.

4. Plan for the future

The journey to $1 million is also an opportunity for teaching moments. Start early with age-appropriate conversations about money, investing, and their own financial planning, and use this journey to celebrate milestones, like reaching $100,000 or $500,000. These reinforce the value of steady investing and give them a tangible sense of how discipline leads to success.

By age 18 the portfolio could be worth $1 million or more, depending on contributions and market performance. Decide whether to transfer the funds as a lump sum or maintain some control to guide its use – for education, starting a business, or continued investments. By then, they should have both the resources and knowledge to make informed decisions about what how their portfolio should look like.

A million-dollar head start

Making your child a millionaire by 18 isn't just about the money – it's about giving them options, and the wisdom to use those options well. It’s a gift that sets them up for life. And the journey to that starts with a single step, whether that's an initial investment, a commitment to monthly contributions, or simply a shift in mindset about your child’s financial future.

What matters is having a goal and following a plan to reach it. Even a $200 per month contribution on its own, growing at a yearly rate of 10%, becomes $115,365 in 18 years – and that’s without an initial deposit!

By starting early, staying consistent, and thinking long-term, you're giving your child the ultimate head start: financial independence and the knowledge to sustain it. It's a legacy of empowerment, security, and opportunity that will resonate far beyond their 18th birthday.