When Tim McMillan, host of the Money Talks podcast, visited a Year 6 class in Perth, he encountered a level of financial savvy that left him stunned. Far from the typical primary school chatter, these students spoke with authority about earnings, savings, and investment strategies that many grown-ups find daunting.
From Chores to Capital: The Young Entrepreneurs
The journey for these children often begins with household tasks. One student explained a systematic approach: "I get $20 a month. We rotate chores each week - the dishwasher, the washing, emptying the bin." Another had a performance-based model: "I get five, ten or twenty dollars depending on how messy my room is. I feed the dog, take the bins out, clean my room."
But the real surprise was not the pocket money itself; it was the entrepreneurial spirit it funded. One boy had independently saved for and purchased his own surfboard. Another turned a farm visit into a venture: "When I visit my friends, they have a paddock with horses. I grab the manure and sell it on the side of the road. About $80. We split it - $40 each."
The ambition scaled even higher with a pair of students who launched a neighbourhood bin-cleaning service. "We do $30 a bin," one said. "We've made 800 dollars - 400 each."
Thinking Like Investors: Shares, Spreadsheets and Strategy
These pupils are not just earning; they are strategically planning and investing. One shared his personal investment rule: "I save up $500 if I want to buy shares. Then it can increase and I can have more by the end of it." Another demonstrated a clear understanding of market forces: "If lots of people sell, it goes down. If lots of people buy, it goes up. You make a profit."
Their methods are remarkably organised. Several track income and expenses using spreadsheets and charts. One has a multi-stream income plan mapped out for the future: "I want to do multiple jobs - KFC, YouTube, lawn mowing. The quicker the better. Buy a house."
A Generational Shift in Financial Mindset
Finance educator Bryan Invests, featured in the Money Talks episode, was deeply impressed. "These kids are already developing the mindset most adults don't learn until much later," he observed. "If they understand money now, they won't be intimidated by investing when they're older."
He emphasised that a child's greatest financial asset is time. Starting early, even with modest sums, allows money to grow through compounding interest—a concept these students intuitively grasp.
Tim McMillan sees this as a significant cultural shift. "They're not afraid of money," he reflected. "They're curious. They're confident. They're already thinking like adults who want to build a future." Unlike past generations where finances were often a closed topic, these children learn from teachers, parents, online content, and hands-on experience.
For Bryan, this early literacy is the ultimate win. "You're never too young to learn about money," he says. "And if these kids are anything to go by, Australia's next generation of investors is already on its way."
How Parents Can Foster Financial Growth
With rising living costs, many Australian parents are seeking ways to give their children a financial head start. Long-term investing is becoming a popular strategy, leveraging the power of time in the market.
Vanguard Australia illustrates that consistent, small contributions can accumulate significantly. For example, assuming annual returns of 5.80%, investing $50 monthly from birth could grow to approximately $18,200 by age 18.*
Products like the Vanguard Personal Investor Kids Account aim to make this accessible, allowing automated investments from as little as $25 per fortnight. The platform features low-cost, diversified portfolios managed by professionals, offering a 'set-and-forget' approach for long-term goals.
Financial experts note the benefits extend beyond the balance. Children who watch investments grow are more likely to understand saving, patience, and strategic planning as adults.
*This example is for illustrative purposes only and is not a forecast. All investments carry risk. Consider the Product Disclosure Statement (PDS) and Target Market Determination (TMD) before deciding.
