Media release: Piggy banks are out: InvestSMART reports surge in families investing for children

As interest rates fall, InvestSMART is on track to record 70% growth in new investment accounts for under-18s.

By InvestSMART · 3 Jun 2025

By InvestSMART ·
3 Jun 2025 · 5 min read

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Media release

Piggy banks are out: InvestSMART reports surge in families investing for children

New InvestSMART investment accounts for children are projected to rise 70% this financial year, following two consecutive years of annual growth around 10%.

Falling interest rates are driving the shift away from savings accounts and into higher-return investment accounts.

Just $50 a week from birth could grow to $84,000 by the time a child turns 18 with the right strategy.

InvestSMART's free Investing for Kids eBook helps families invest confidently and make informed decisions.

Sydney (3 June 2025): Australian families are ditching piggy banks and low-interest savings accounts and turning to long-term investments to secure their children's financial futures.

ASX-listed investment platform InvestSMART has seen a sharp rise in families opening investment accounts for children, with new accounts for under 18s projected to grow by 70% in the 2024-25 financial year. This follows two straight years of annual growth of around 10%, highlighting a growing shift in how Aussies are planning for the next generation.

Mr Ron Hodge, CEO and founder of InvestSMART, said, "With interest rates falling and inflation continuing to erode the value of savings, families are realising that traditional savings accounts are no longer enough.

"Families are looking for smarter alternatives with the potential for high long-term returns that can make a real difference by the time a youngster reaches age 18."

Even small, consistent investments can add up over time - especially when started early. Contributing just $50 per week from birth could grow into a portfolio worth approximately $84,000 by the time they turn 18, assuming an average annual return of 6.5% - providing a valuable head start for education, a car, or a home deposit.

To support families in getting started, InvestSMART has released a free Investing for Kids eBook.

"There's a lot to consider when moving beyond the piggy bank and starting to build real, long-term wealth for your children or grandchildren - from choosing the right investment options to understanding tax implications and account structures," said Mr Hodge.

"Our eBook demystifies the process and is designed to give families the clarity and confidence to take that first step."

The Investing for Kids eBook is available to download at investsmart.com.au/guides.

Contact

Ron Hodge
CEO & Founder, InvestSMART
📧 r.hodge@investsmart.com.au
📞 0404 878 824

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Frequently Asked Questions about this Article…

What did InvestSMART report about families opening investment accounts for children?

InvestSMART reported a sharp rise in families opening investment accounts for under‑18s, projecting new accounts to increase by 70% in the 2024–25 financial year after two consecutive years of about 10% annual growth. The ASX‑listed platform says Australians are moving away from piggy banks and low‑interest savings accounts toward long‑term investing for kids.

Why are more families choosing investment accounts for kids instead of traditional savings accounts?

According to InvestSMART, falling interest rates and ongoing inflation are eroding the value of traditional savings accounts. Families are seeking smarter alternatives—investment accounts with the potential for higher long‑term returns—to give children a better financial head start.

How much could regular investing for a child really grow by age 18?

InvestSMART gives an example: contributing $50 a week from birth could grow to approximately $84,000 by age 18, assuming an average annual return of 6.5%. This illustrates the power of starting early and investing consistently, though actual returns will vary.

What resources does InvestSMART offer to help families begin investing for children?

InvestSMART has published a free 'Investing for Kids' eBook that explains how to choose investment options, understand tax implications and account structures, and build a long‑term plan. The guide is available to download at investsmart.com.au/guides.

What practical things should everyday investors consider when investing for their kids?

The article highlights key considerations: start early and be consistent, choose suitable investment options for long‑term growth, understand tax rules and account structures for minors, and balance risk and goals (education, car, home deposit). InvestSMART's eBook aims to demystify these steps.

Does the InvestSMART release say how investment returns compare to savings accounts?

While the release doesn’t provide direct comparative figures, InvestSMART attributes the shift to investments to falling interest rates and inflation making savings accounts less effective. It suggests long‑term investments can offer higher potential returns than low‑interest savings over time.

Is this investing‑for‑kids trend focused on Australia?

Yes. The media release was issued from Sydney and refers to InvestSMART as an ASX‑listed investment platform, indicating the reported trend and guidance are focused on Australian families.

Who can I contact at InvestSMART for more information about investing for children?

The media release lists Ron Hodge, CEO & Founder of InvestSMART, as a contact. Email: r.hodge@investsmart.com.au, Phone: 0404 878 824. The 'Investing for Kids' eBook is also available at investsmart.com.au/guides.