Entrepreneur Eric Malka faced a major shift in mindset when he sold his company, The Art of Shaving, to Procter & Gamble for a reported $60 million in 2009. Transitioning from a company founder to an investor, Malka realized the importance of educating himself on wealth management and investing. He took courses, read books, and diversified his portfolio with stocks, bonds, private equity, and real estate, emphasizing the need for patience and long-term returns.
Now, as a father of two teenage sons, Malka is passing on his financial wisdom to the next generation. He believes in teaching kids about money from a young age, starting with the basics of budgeting and saving. By providing his children with a fixed allowance per month, Malka is instilling important financial skills without them even realizing it. He recommends the book “Raising Financially Fit Kids” by Joline Godfrey for age-appropriate financial advice.
Dayssi Olarte de Kanavos, president and co-founder of Flag Luxury Group, also emphasizes the importance of educating children about money early on. She and her husband gave each of their three children a “low risk” sum of money to invest in companies of their choice. This hands-on approach allowed their children to learn about investing and the stock market firsthand. Olarte de Kanavos believes that teaching children about saving, interest, and the difference between good and bad debt is crucial for their financial literacy.
Gregory Van, CEO of wealth platform Endowus, takes a similar approach with his young children. By talking to them about the tradeoffs of investing and encouraging delayed gratification, Van is teaching his kids important financial concepts in a relatable way. He and his wife have investment portfolios for each of their children, showcasing positive or negative performance to teach them about the ups and downs of investing.
When it comes to discussing inheritance with children, wealthy individuals in advisory network Tiger 21 face a common concern. Founder and chairman Michael Sonnenfeldt notes that many members want to wait until their children are close to 30 years old and have established careers before discussing inheritance. However, some members prefer to start teaching responsible stewardship of wealth in their late teens or early 20s. Sonnenfeldt emphasizes the importance of open, values-driven conversations about money and investing to prepare children for their financial future.
Overall, the key takeaway from these experts is the importance of educating children about money from a young age, teaching them valuable financial skills that will benefit them for a lifetime. By instilling good financial habits early on, parents can set their children up for success and empower them to make informed decisions about their finances.
