A quiet revolution is taking place in Australian homes and classrooms, where the traditional concept of pocket money is being replaced by powerful lessons in wealth creation. A growing number of families are shifting focus from simple spending to strategic saving and investing, aiming to give their children a lifelong financial advantage.
From Chores to Shares: The New Generation of Savers
The latest episode of the 7NEWS podcast 'Money Talks,' powered by Vanguard, showcases this trend in action. At a primary school in Perth, students confidently discuss their financial habits with host Tim McMillan. Their income sources have evolved beyond basic allowances. One child earns $20 a month by rotating through household chores like unloading the dishwasher and taking out the bins. Another receives $11 weekly for feeding the family dog.
More impressively, these young Australians are displaying remarkable entrepreneurial spirit. One boy has established a side hustle selling horse manure for gardens, bringing in roughly $40 fortnightly. Another, in partnership with a friend, launched a bin-cleaning business, charging $30 per bin and having already split $800 in profits.
Their financial goals reflect a mix of short-term enjoyment and long-term strategy. While some dream of buying Crocs and accessories, others are focused on bigger prizes. "I've bought a surfboard, a Jurassic Park video game, and now I'm saving for a Kindle," shared one future investor. Another explained his share market logic with surprising clarity: "If lots of people sell it, it goes down. If lots of people buy it, it goes up. You make a profit." One ambitious student, who has already made a $3,000 profit, plans to one day own a KFC franchise, reasoning that "more people will probably buy food. Especially fried chicken."
The Power of Time: A Lifelong Financial Head Start
Finance educator and content creator 'Bryan Invests', featured on the podcast, emphasises the incredible asset children possess: time. "The one big advantage your kid has is time," Bryan stated. "The more time they have, the more that money will compound over the long term."
Bryan's own background informs his mission. He moved to Australia from Myanmar at age seven, and his family struggled financially. He grew up believing investing was an activity "only people in suits could do." Now a full-time dad and everyday investor, he runs a YouTube channel demystifying wealth building. He provides a compelling example: investing just $100 a week during childhood could potentially grow to $1 million by retirement age, thanks to compound interest. "It gets bigger and bigger and bigger," he said. "You're earning interest on top of interest."
His core message to parents is empowering: you don't need substantial wealth to help your children build it. You simply need to start the journey early and foster a belief in their own capability.
Making Early Investing Accessible for Families
With rising living costs and home ownership becoming more challenging, experts suggest the most valuable gift parents can give is time in the market. Platforms are emerging to facilitate this. Vanguard Personal Investor Kids allows parents to start a regular investment schedule for their children with no account fees and low management costs.
The platform uses professionally managed, diversified portfolios—so parents don't need to pick individual shares—positioning it as a simple, set-and-forget strategy for long-term growth. Vanguard, which oversees more than $18 trillion in assets globally, illustrates the potential: contributing $50 a month from birth, with an assumed annual return of 5.80%, could grow to approximately $18,200 by the child's 18th birthday.
Financial advisers championing this approach note the benefits extend far beyond the final balance. Children who watch their investments grow are more likely to develop a deep understanding of saving, patience, and strategic long-term planning—skills that will serve them throughout their adult lives. This movement represents more than just building a nest egg; it's about cultivating a generation of financially literate and confident Australians.
