Why Delaying Investment Could Be a Missed Opportunity for Families

⚠️ Any advice provided through our communications and platforms is general financial advice only and has not considered your individual objectives, financial situation, or needs. Consequently, before you decide to act on any of the information provided, it’s important for you to evaluate its appropriateness for your personal circumstances.

Raising children in Australia has never been more financially demanding. From childcare and education to extracurriculars and everyday expenses, the cost of parenting continues to climb. Yet, despite these pressures, many Australian families are taking proactive steps to secure their children’s financial future.

According to the Finder Parenting Report 2023, 57% of Australian parents have opened savings accounts for their children under age 12 (Godfrey 2023). This reflects a strong desire to instil savings habits and provide a financial buffer. But while savings accounts offer security, they may fall short in delivering meaningful long-term wealth growth.

The Cost of Waiting

Many families understandably prioritise their own financial goals—reducing debt, building superannuation, and ensuring surplus income—before considering investments for their children. This strategy can enhance household wealth and tax efficiency, especially when surplus funds are directed to offset accounts or retirement savings.

However, delaying dedicated investments for children can mean missing out on one of the most powerful forces in finance: compounding. The earlier investments begin, the longer they have to grow—and even modest contributions can snowball into substantial outcomes over time.

Busting the Myth: “You Need a Lot of Money to Start Investing”

One common misconception is that investing requires large sums of money. In reality, historical data shows that markets tend to rise over time, despite short-term volatility. This underscores the importance of patience, consistency, and a long-term mindset.

A proven method for building wealth gradually is dollar-cost averaging (DCA)—investing a fixed amount at regular intervals, regardless of market conditions. DCA helps smooth out the average purchase price of investments and reduces the emotional impact of market fluctuations. When paired with a diversified portfolio and a long-term view, it becomes a powerful tool for stable wealth creation.

Starting with Intention

Investing for the next generation doesn’t require perfect timing or complex strategies. What it does require is a structured, intentional approach—one that can be guided by professional advice. Financial advisers can help families look beyond the piggy bank and explore options like:

• Regular investment contributions

• Diversified portfolios tailored to long-term goals

• Education-focused investment strategies

How Prosper Financial Planning Supports You

At Prosper Financial Planning, we understand the unique financial pressures families face—and the opportunities that come with planning ahead. Our approach is built around:

• Personalised advice tailored to your family’s goals, values, and financial situation

• Strategic investment planning that considers both short-term needs and long-term aspirations

• Education-focused solutions to help you prepare for school fees, university costs, and beyond

• Ongoing support and reviews to keep your plan on track as your family grows and evolves

We help you move beyond the piggy bank and toward a future where your children have a meaningful financial head start.

Ready to Take the Next Step?

The best time to start investing for your children was yesterday. The next best time is today.

Whether you're just beginning your financial journey or looking to optimise your current strategy, Prosper Financial Planning is here to guide you. Let’s explore how small, consistent steps today can lead to big outcomes tomorrow.

Contact us to book your complimentary consultation and start building a brighter financial future for your family. Source: KAPLAN Professional - Beyond The Piggy Bank