A growing number of parents are embracing early financial education for their children, encouraging them to invest in low-risk assets and understand the fundamentals of investing. From Singapore-based CEO Gregory Van to entrepreneur Eric Malka and real estate investor Dayssi Olarte de Kanavos, these leaders share their insights and strategies for guiding the next generation towards financial literacy.
Leaders were advised by CNBC to allow their children to invest in low-risk assets from a young age and to encourage them to explain their investment rationale. Gregory Van, CEO of Singapore-based wealth platform Endowus, emphasized the importance of communicating with children in a way they understand.
He suggested posing questions like, 'Would you rather spend $100 today on a toy, or have it grow into $200 in 10 years when you're 16?' Entrepreneur Eric Malka, who transitioned from being a company founder to an investor after selling his business, shared valuable lessons he's learned with his teenage sons. He acknowledged the contrasting mindsets of entrepreneurs, who often prioritize short-term gains, and investors, who focus on long-term returns. Malka actively educated himself through wealth management courses, books, and diversified his portfolio across stocks, bonds, private equity, and real estate. He implemented a hands-on approach with his children, allowing them to invest a small portion of their savings, even when they faced losses. Malka believed that these learning experiences, though potentially painful, were more valuable than successes. He emphasized the emotional resilience and humility required to be a successful investor. On the other hand, Van highlighted the importance of teaching children about the risks associated with investing. He engages his young children in conversations about potential losses and the concept of delayed gratification. They actively participate in managing their investment portfolios, which consist primarily of gifts received during holidays. For Dayssi Olarte de Kanavos, president and co-founder of real estate company Flag Luxury Group, early financial education is crucial. She and her husband allocated a low-risk sum to each of their middle school-aged children for them to invest in companies of their choice. She observed that her children's investments, guided by their own research and decision-making, yielded positive returns. Olarte de Kanavos drew parallels between her real estate investing experience and the importance of patience in financial matters. She believes in transparency and encourages her children to explain their investment choices, making the process an engaging and integral part of their education. She also advocates for giving children an allowance from an early age to foster financial responsibility
Investing Financial Literacy Children Parents Education Money Management
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