Simple ways to build financial security for your kids — starting from day one

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I cringe when people say their kids are their “broke best friends.”

I get it — they don’t work or bring in their own income (yet), so technically it checks out. But honestly? That phrase never sits right with me.

Because here’s the thing: It’s not their job to bring in money right now. It’s ours to set them up for a solid future, one small, intentional step at a time. 

As parents, we owe it to our babies to lay the foundation for their financial well-being — before they’re even born if we can, and definitely from day one.

You don’t need to be rich. You don’t need to throw hundreds into an account every month. You just need a plan and a willingness to start somewhere.

Let me show you how.

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Step 1: Open a 529 Plan

There are two main types of 529 plans:

1. 529 College Savings Plan

• What it is: A tax-advantaged investment account that grows over time and can be used for qualifying educational expenses (college, trade school, even K-12 tuition and student loan repayment).
• Pros: Grows tax-free, withdrawals for education are tax-free, can be transferred to other family members if unused.
• Cons: Funds must be used for qualifying education-related expenses, or you’ll pay taxes and a penalty on the earnings.

2. 529 Prepaid Tuition Plan

• What it is: Lets you lock in today’s tuition rates at eligible public colleges and universities.
• Pros: Protects you from tuition inflation.
• Cons: Less flexible — limited to certain schools, doesn’t cover room and board, and may not transfer easily out of state.

Which one should you pick? If you’re unsure about where your child will go to school or want more flexibility, go with the College Savings Plan. That’s what I chose for my kids.

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Step 2: Open a Custodial Savings Account

As soon as you get your child’s Social Security card, open a savings account in their name.

Look for one with no fees and a decent interest rate. Personally, I use Discover Bank because it’s easy to manage, has no monthly maintenance fees, and offers a competitive APY (annual percentage yield).

• Pros: Teaches kids the value of saving early, builds financial cushion for non-college needs, super easy to set up.
• Cons: Interest grows slowly compared to investment accounts, and the money technically becomes theirs at the age of majority (usually 18 or 21 depending on your state).

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How to Make Contributions Work for You

You don’t need to go big. I started small and still keep it manageable:

• I deposit $25/month into each kid’s savings account
• And $25/month into each of their 529 plans

That’s it. Nothing fancy. Just $50/month per child. And yes — it adds up.

Here’s how to boost it even more without stressing your own budget:

• For birthdays and holidays, send family and friends the contribution link to their 529 or savings accounts instead of asking for more toys.
•  Any cash gifts they get? Deposit that into their accounts too.
• Some banks even let you set up gift pages so loved ones can chip in easily for special milestones.

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Long-Term Thinking, Short-Term Peace

If at any point I can’t contribute anymore, I’ll stop. No shame, no guilt. I’m just glad I did something.

Because guess what? That money will still be there for them. It will still be growing. It will still matter.

My kids are currently 3 and 1 years old, and they already have more in savings than many adults I know. And I’m not saying that to brag — I’m saying it to encourage you.

You don’t have to do it perfectly. You just have to start.

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Why I’ll Never Call My Kids “Broke Best Friends”

Because they aren’t.

They’re not here to make me money or prove their worth through a paycheck. They’re here to be nurtured, protected, and guided — and part of that includes preparing them for a secure future, one $5 deposit at a time.

So no, I’ll never call them my broke best friends.

And I hope you won’t have to either.

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Found this helpful? Share it with a fellow mama who’s ready to invest in her babies’ future. 💌