Ask ten 40-year-olds what they’d change about their finances. The answer is almost always the same: “I should have started earlier.” Not bigger. Not smarter. Earlier.
There’s a simple reason for that regret. Money set aside doesn’t just sleep: it can earn a little each year. And that small gain earns something in turn. Over time, this snowball effect becomes huge. What matters most isn’t the amount. It’s the number of years.
An example that stings (and helps)
Let’s assume an average return of 5% a year. It isn’t guaranteed, but it’s typical of a balanced long-term investment.
Lea puts aside CHF 50 a month from birth to 18, then nothing more. She has paid in CHF 10,800. At 65 she has about CHF 173,000.
Mark starts at 30 and pays in CHF 50 a month until 65. He puts in almost twice as much, CHF 21,000. At 65 he has about CHF 57,000.
Lea paid in half as much and ends up with three times more. Her only “trick”: her parents started for her.
Independence isn’t the same as being rich
Being financially independent means being able to say “no”: to a job that doesn’t suit you, to a loan you don’t need, to someone who wants to decide for you. It’s the freedom to choose your own life. And that freedom is built early, through small habits.
Researchers at the University of Cambridge showed that money habits are formed by the age of 7. What your child learns now — waiting, comparing, keeping part of what they receive — they’ll repeat as adults, almost without thinking.
Try this tonight with your child
Take three jars: Spend, Keep, Grow.
Every time pocket money arrives, your child splits the coins themselves.
The “Grow” jar stays closed for a year. Promise a small “bonus” from you at the end, so they feel what “earning a return” means.
You didn’t start at 6? That’s fine. Your child can. The best gift you can give them is time.
Further reading
Lusardi, A. & Mitchell, O. (2014). The Economic Importance of Financial Literacy. Journal of Economic Literature, 52(1).
Whitebread, D. & Bingham, S. (2013). Habit Formation and Learning in Young Children. University of Cambridge / Money Advice Service.
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Educational content, not investment advice. Returns are not guaranteed.