My kids are now 4 and 6, and I’m finally beginning to understand what people mean when they say, “You’re almost there.” At first, I thought it meant parenting would suddenly become easy—LOL. Spoiler: it doesn’t. But I can now say that some things do get easier. Sometimes it’s because the kids can do more on their own, and sometimes it’s because we, as parents, have finally mastered the task at hand. Or maybe it’s both.
It’s hard to see this when you’re deep in the trenches—when you’re sleep-deprived, cleaning up messes, and negotiating with a toddler about why pants are not optional. But as a financial advisor, I often find myself drawing parallels between everyday life and investing. So, here’s my attempt to compare raising young kids to investing. Wish me luck…
1. The Early Years: High Input, Low Return
In the beginning, parenting is all about effort. You’re spoon-feeding every bite, dressing them, and carrying them everywhere. It’s like putting money into a retirement account in your 20s—you’re doing all the work, and it feels like nothing’s happening.
I remember spending 20 minutes convincing my 3-year-old to put on socks. That’s like researching a stock for hours and watching it drop the next day. It’s exhausting, and the payoff isn’t immediate—but it’s coming.
2. Compounding Habits: Teaching Money and Life Skills
As they grow, you start to see the power of repetition. You give your 6-year-old a weekly allowance and help them divide it into “spend,” “save,” and “give” jars. At first, it’s just a fun activity. But over time, they begin to understand budgeting, patience, and generosity.
Just like compound interest, these small lessons build on each other. One day, they’ll make a smart money decision, and you’ll realize: this is the return on all those tiny deposits of time and effort.
3. Diversification: Every Kid is Different
One of the biggest lessons I’ve learned is that no two kids are the same. One of mine thrives on structure and charts; the other learns best through storytelling and play. I’ve had to adjust my approach for each of them.
It’s just like investing—you wouldn’t put all your money in one stock. You diversify because different assets behave differently. The same goes for parenting strategies.
4. Market Volatility: The Tantrums and Setbacks
Just when you think you’ve figured it out, something changes. Your potty-trained child starts having accidents again. Or your once school-loving kid suddenly resists going.
Parenting, like investing, isn’t linear. There are regressions and emotional outbursts—just like market dips. The key is not to panic and pull out. Stay calm, stay consistent, and ride it out.
5. Long-Term Vision: The Payoff
Then come the moments that make it all worth it. Your child independently packs their lunch. Or comforts a younger sibling. These moments feel like dividends—small but meaningful returns on your investment.
It’s like checking your portfolio after years of steady contributions and seeing real growth. You realize the effort was worth it.
6. Conclusion: Stay Invested
Even when you’re exhausted or unsure, showing up consistently matters. The best investors don’t try to time the market—they stay in it. The same goes for parenting: consistency beats perfection.
So, if you’re in the thick of it, hang in there. You’re not alone. And yes—you are almost there.
Read more articles by Renee Hanson