Wealthy leaders teach kids about investing, budgeting, and inheritance for long-term financial success

From CNBC: 2025-01-23 18:16:12

Entrepreneur Eric Malka shifted his mindset when he sold his company, learning lessons he’s now passing to his kids. He took courses on wealth management, founded Strategic Brand Investments, and now has a diversified investment portfolio. He emphasizes patience and long-term returns over short-term gains, a valuable lesson for both himself and his children.

Dayssi Olarte de Kanavos, president of Flag Luxury Group, taught her children about investing early. She allocated a “low risk” sum of money for them to invest in companies like Apple and Google. She emphasized the value of patience and long-term strategy, influenced by her experience in real estate investing.

Eric Malka focuses on teaching his kids budgeting by providing them with a fixed allowance per month. He recommends the book “Raising Financially Fit Kids” and emphasizes the importance of starting an allowance early to teach children about making their own decisions and managing money.

Tiger 21’s founder Michael Sonnenfeldt notes that wealthy parents are concerned about when and how to talk to their children about their inheritance. Some wait until children are close to 30 and established in their careers, while others start in late teens or early 20s. Sonnenfeldt suggests encouraging open conversations about money and investing.

Read more: Wealthy leaders on financial advice for kids: Investing, budgeting and inheritance