Building Wealth for Your Kids: A Simple Path You Can Start Today

Every wealth story begins somewhere.

For many young Australians, that story starts the day they earn their first pay cheque, i.e. stacking shelves, making coffees, working weekends, or helping at the local sports club.

What most parents do not realise is that this moment, as small as it seems, can become the start of a powerful long-term wealth journey. And with just a little guidance, kids as young as 14 years old can quietly build a foundation that will give them a head start many adults only wish they had.

This article explains a simple strategy that uses an existing government scheme, the super co-contribution, to help your kids grow real long-term wealth. It requires no advanced investing knowledge, no complex structures, and no big financial commitment. Just consistency, time, and a little help from mum or dad.

How the Government Helps: The Super Co-Contribution

The Australian Government supports low and middle-income earners by adding up to $500 into their super fund each year, if they meet certain conditions. Many adults qualify, but so do teenagers with part-time jobs.

Parents are often surprised to learn this.

A fourteen-year-old earning casual wages can become eligible for this payment, and the earlier they start, the more powerful the long-term compounding becomes.

A Simple Example: A Teenager Working Part-Time

Let us imagine your child is 14 and has just started their first casual job. They work a few shifts a week, maybe 10 to 15 hours, earning about $200 a week. Their employer will pay compulsory super at 12 percent, which is $24 a week, or $1,248 a year.

If nothing else happens, and they keep working similar hours through high school and uni for the next nine years, their super balance (compounding at 7 percent per year) could grow to around $15,000 by the time they graduate.

This is without any extra contributions and ignoring tax inside super for simplicity. Most kids finish university with no assets at all. Your child could finish with a meaningful financial base already working for them.

Where Parents Come In: A Small Contribution With a Big Impact

Here is the strategy that really accelerates things:

You, as a parent, contribute $1,000 each year into your child’s super fund from your after-tax income.

If your child’s total income stays below the government threshold (currently $47,488 for the 2026 year), the government adds $500 as a co-contribution. That is a 50 percent return immediately, before any investment growth.

If you do this consistently for nine years, your child’s super balance could reach around $35,000 by the time they finish their uni.

This sets them up with:
• a strong financial base
• early exposure to long-term investing
• thousands of dollars in government contributions
• a lesson in consistency that will stay with them for life

It is one of the simplest, most effective wealth strategies available and almost no parents know about it.

Eligibility: What Needs to Happen

To receive the government co-contribution:
• your child’s income must be below the low-income threshold
• they must earn at least 10% of their total income from employment or carrying on a business
• they are Australian resident
• they must make at least $1,000 in personal (after-tax) contributions
• the super fund must receive the personal contribution before 30 June
• employer super contributions do not count toward this $1,000
• a tax return must be lodged for that financial year

The ATO uses the tax return and the information from the super fund to assess eligibility and calculate the co-contribution amount. If the relevant labels in the tax return are not completed properly, your child may not receive the correct amount or may miss out completely, so it is important to get this part right.

The co-contribution is usually paid into the super fund between November and January following the end of the financial year.

Why This Matters: The Beginning of Their Wealth Story

Adults often say, “I wish I had started earlier.” Your child does not have to say that.

A small habit built at 14 can turn into a confident financial mindset at 24, 34, and beyond. It teaches patience. It teaches responsibility. And it shows them that wealth is not about chasing quick wins, it is built slowly, with intention.

This is not just about money.

It is about giving your child a story, their wealth story.