The power of starting at zero
A dollar a day is about $30 a month, a sum many families could set aside for a child. Invested at 7% from birth, it grows to around $13,000 by 18, about $37,000 by 30, and about $480,000 by 65. Only about $24,000 of that 65-year total is money actually put in; the rest is decades of compounding.
This is the case for starting early, whether it is a parent opening an account for a newborn or a young adult putting away a small amount from a first job.
Why the last years matter most
Most of the growth in a long plan arrives at the end. A dollar a day invested at 7% from birth reaches about $13,100 by 18, but about $481,700 by 65, from only $23,725 of deposits. The final ten years add more than the first fifty, because each year's return is earned on a much larger balance.
That pattern is why starting early beats starting big. A parent who sets aside $30 a month at a child's birth gives that money 65 years to compound, something no amount of saving later can fully make up for. Even if the child adds nothing for decades, the early start does the heavy lifting. The birthday money invested calculator and the college fund calculator show other ways to use the same idea.
Common questions
What would a dollar a day since birth be worth at 65?
About $481,700 at a steady 7% return, from $23,725 of total deposits.
How much is a dollar a day for 18 years?
About $6,570 saved, or roughly $13,000 if invested at 7%.
Where can I invest for a child?
In the US, options include 529 plans, custodial UTMA/UGMA accounts and a custodial Roth IRA once the child has earned income.
This calculator gives estimates for planning. Real returns, rates and prices change, so treat the result as a guide rather than a promise. Read how we build and check our calculators.