Set up loved ones for success

Discover how you could help set up your family for long-term success.

When most of us think about investing, it’s usually for our goals – buying a house or living that dream retirement. But what if your investments could go further? Like way further. Think helping your kids buy their first home or giving your grandkids a head start on uni fees. That’s the idea behind generational investing. It’s not about handing over a stack of cash one day (though, that’s nice too!). It’s about setting a financial snowball in motion that keeps growing long after you’ve started it.

Here’s why it’s worth considering and how to get the ball rolling.

Start thinking big picture

Picture this: you plant a tiny seed today and years down the line, your family has a giant tree – full of shade, fruit and endless picnic opportunities. That’s generational investing. By starting now, even with small amounts, you let compound returns work their magic, growing your initial investment into something much bigger over time.

Need proof? Let’s talk about big tech. If you’d invested $1,000 each in Google, Facebook, Amazon, Tesla or Microsoft a decade ago, you’d be looking at some serious gains today – think tens or even hundreds of thousands of dollars combined, depending on the stock. Those companies didn’t just grow; they changed entire industries, and investors who got in early reaped the rewards.

 

How it could work for you

Generational investing doesn’t have to be complicated or overwhelming. Here are some simple ideas to get started:
 

Open an account just for them

Start an investment account for your child or grandchild. Even if you’re only adding a little bit each month, the long-term potential could be significant. A CommSec Minor Trust Account is an investment account opened and operated by an adult for a child under the age of 18.
 

Choosing tools

While there’s plenty to choose from, you could consider low-maintenance options like index funds or ETFs. They’re like the slow cookers of investing – potentially set and (mostly) forget it.
 

Make it a family thing

Involve your kids! Show them how investing works, explain your decisions and help them get comfortable with the idea of growing money over time.
 

Know your options

There are various options available depending on your set-up. Speaking with a financial adviser could help you uncover what’s best for your situation.
 

So much more than money

The best part? You’re setting an example and teaching your family about smart financial decisions. It’s the gift of opportunity – whether that’s less student debt, a first home deposit or the ability to chase loftier goals without financial stress. It’s also about making life easier for the people you love – helping them avoid some financial roadblocks and giving them the freedom to dream a little bigger.
 

Ready to trade for your child?

You could help kick-start their financial future with a CommSec Minor Trust Account.