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

Eric Malka’s contractor had completely change their mind when sold his company and becomes an investor. Since then taught lessons that now goes to their children.

When the art of shaving – which malka and his wife myriam zaoui have founded in 1996 – was bought from Proccer & Gamble in order A $ 60 million report In 2009, Malka understood you needed to educate.

“When an entrepreneur as me is fortunate enough to have a liquidity event, then we faced … with the managing of asset without an appropriate training,” said to CNBC for videocall. Investors will focus on be patient and on the long-term returners, whereas the company’s founders often look at a short-term plan, a “almost opposite”, Malka said.

It took rich management courses, read books on investment and now has a diverse portfolio, Bonds, private capital, with approximately 10% intended for more risky investments. In 2014 founded the bottom of Private Equity Strategic Brand Investments.

When it was to educate his children – 14 and 16 and 16 and the money’s attitude, the attitude of Malka was to help you learn from the Earth.

“One of the challenges I faced with my teenagers before it is very easy to earn money across the social media and through what they feel from friends,” he said. Their biggest child thought that could generate a monthly return of 20%, which malka described as “very worrisome.” So malka allowed her a small part of their savings, hoping to provide the opportunity to learn – and his son lost 40% of that investment after exciting future currency.

“I hate to put my son for failure, but sometimes you know, the lessons learned when you get more valuable than you have success,” maka said.

It’s a point that raises with Gregory Van, CEO of the pitched wealth flatness ended endwear. He and his wife have children of eight, six and three years. He said he will teach him that it is important to mislead when auctions looked great, even if it can be small actually. “The emotional muscle, and humility needed to be a good investor is something that people need to develop on their own,” he said.

She and her husband allotted a sum of “low risk” money to each of their three children in the middle school for them to choose companies to invest. “Our kids have chosen. Apple’s, Amazon, Google and it Alababa. I am All, except one, they have had freshers. While they keep their money in the market and continue to be thoughtful in their approach, we adjust each year to their nest egg, “he said to CNBC by email.

Olage de Kanavos said their experience in real estate investment has learned the value of patience. “He influenced my business approach emphasizing the long-term strategy on quick ways,” he said. The Mother of three-off described their own investments in the bag as “very preservatives, to better handle huge risks we take in our real estate.”

She suggested that kids explain why they want to buy certain actions, because “may demitify the investment and integral with their education,” he said.

Van said he talks to their kids on tradesoffs to invest in their own terms. “I ask:” If you investing this $ 100 and fools on next year, how you feel? “” You want to spend $ 100 today, or have turned in $ 200 in 10 years when you are 16 years old? “,” Van said to CNBC via email. “Surprisingly, I am very rational and always go for the delayed gratification,” he said.

Van and his wife have an investment portfolio for each of their children, mostly compound from gifts that have received during the holidays as the Chinese New Year. “Given their long investment horizon, are in very diversified portfolios, multi-handle, and shows up to their sons the performances – positively or negative – every time that they ask.