Wealthy CEOs and founders emphasize the importance of introducing children to financial concepts early in life. By engaging kids in low-risk investments and discussing money management, parents can instill valuable lessons that shape their children's financial literacy. Gregory Van, CEO of a Singapore-based wealth platform, suggests asking children if they would prefer immediate gratification or long-term gains. Similarly, entrepreneur Eric Malka, who sold his company for $60 million, shifted his mindset from short-term business planning to long-term investment strategies. He now educates his teenage sons about the realities of investing, including the potential for losses. Other successful individuals like Dayssi Olarte de Kanavos and Roshni Mahtani Cheung also share insights on teaching children about budgeting, saving, and responsible spending.

Eric Malka, co-founder of Strategic Brand Investments, experienced a significant shift in his financial perspective after selling The Art of Shaving to Procter & Gamble. This liquidity event prompted him to learn about wealth management through courses and books. He realized that managing assets requires a different mindset compared to running a business. While entrepreneurs often focus on short-term goals, investors need patience and a long-term outlook. Malka applied this knowledge to educate his children about the complexities of investing. His approach includes allowing them to make small investments, even if it means facing initial losses. “The lessons learned when you lose are more valuable than the ones when you succeed,” he emphasized.

Gregory Van, CEO of Endowus, believes in teaching children about the emotional aspects of investing. He poses hypothetical scenarios to his young kids, such as asking how they would feel if an investment lost value. Surprisingly, they often choose delayed gratification over immediate rewards. Van also ensures his children understand the performance of their investment portfolios, whether positive or negative. For him, these discussions help build the emotional resilience needed for successful investing. He encourages parents to introduce financial concepts in terms children can relate to, making the learning process both engaging and practical.

Dayssi Olarte de Kanavos, president of Flag Luxury Group, advocates for early financial education. She and her husband provided their middle school-aged children with a sum of money to invest in stocks. This hands-on experience taught them about market fluctuations and the importance of long-term strategy. Olarte de Kanavos emphasizes the value of patience in real estate investing, which has influenced her approach to personal finance. Her advice is to give children an allowance starting in the first grade, allowing them to make independent financial decisions and manage the consequences. She recommends resources like Joline Godfrey’s book “Raising Financially Fit Kids” to guide age-appropriate financial education.

Roshni Mahtani Cheung, CEO of The Parentinc, focuses on long-term financial planning for her daughter. She opened a fixed-deposit account for her eight-year-old and introduced her to the concept of interest through holiday gifts. Cheung aims to raise a financially savvy and confident child who can make informed decisions. Members of the advisory network Tiger 21 face the challenge of discussing inheritance with their children. Michael Sonnenfeldt, founder of Tiger 21, notes that while some members prefer waiting until their children are in their late 20s, others start conversations in the teens or early 20s. Both approaches aim to foster responsible stewardship of inherited wealth. Encouraging open, values-driven discussions about money and investing is key to preparing children for financial independence.

Ultimately, these wealthy leaders agree that early financial education equips children with the skills and mindset necessary for long-term success. By involving kids in low-risk investments, teaching them about budgeting, and fostering open discussions about money, parents can prepare the next generation to handle wealth responsibly. The lessons learned through these experiences—especially those gained from setbacks—are invaluable in building a solid foundation for future financial well-being.