Time is your best friend when it comes to the magic of compounding. The earlier you start, the better!

In this example, the total amount gifted is $18,000. That means it multiplies by 55X in a matter of decades. Will this be enough for her to retire off of? Probably not. But an extra one million dollars is not something to sneeze at.

We aren’t saying to stop giving fun gifts to babies so that they will have priceless memories and love you more. BUT, ideally there can be a balance between having them love you more now vs. having them love you more 49 years from now. Does love compound at the same rate as its equivalent dollar amount invested in the stock market? Let us know in 49 years.

But seriously. Babies are so lucky because they have so much time to reap the benefits of compound growth. Unfortunately babies don’t have phones to follow PFC and can’t technically open their own investment account.

If YOU want to learn about investing for kids, we have a blog post on our website that goes into detail on the different account types that you can use. The link is in our bio!

As always, reminding you to build wealth by following the two PFC rules: 1.) Live below your means and 2.) Invest early and often.‎

-Vivi & Shane