For many wealthy individuals, early access to financial education is a critical part of their success. And much of that education is often passed down to them by their parents during their childhood.
GOBankingRates sat down with self-made millionaires Matthew Wilson, financial expert and CEO of Handy Gardeners, and Kenan Açıkelli, CEO of Workhy, to discuss the key financial lessons they learned from their parents that were essential in building their wealth.
Read more: I’m a Self-Made Millionaire: 6 Steps I Took to Become Rich on an Average Salary
Try This: 6 Financial Decisions You Must Make If You Want to Be Like the Rich
“The financial lessons I learned from my parents growing up laid the foundation for accumulating wealth, but most of them weren’t the typical advice you’d hear,” Wilson said.
Read below for the most impactful insights that helped the two millionaires launch their financial journeys.
Earning passive income doesn’t have to be difficult. You can start this week.
Save with purpose, spend with intention
“My parents stressed the need to save money,” Açıkelli says. “But you had to use those savings productively, for example for education, investment or emergency funds.”
His parents believed that saving in itself was not useful, but that devoting oneself to specific financial projects was sufficient in itself.
“That lesson shaped how I became a money manager and a strategic thinker about resource allocation,” he added.
Read more: I’m a Financial Advisor: 5 Things the Middle Class Wastes Money On
Acquire knowledge first – before anything else
Açıkelli’s father told him that virtually all wealth was intended to create sustainability in times of crisis and that continued education was important, no matter your age.
He said this principle has driven him to invest a lot of money in education and other forms of self-improvement, which he says have played a vital role in his life.
“And every time I felt inadequate in that aspect, there was always something: a new skill, an area or a principle that was requested,” he said.
Calculated risks should not be avoided
Growing up, Açıkelli saw his parents implement strategies to improve the family’s well-being, even if it meant taking risks. “From creating a business kit to buying land, my parents taught me that it is necessary to calculate risks before taking a risk in order to reap considerable financial rewards.”
This lesson allowed him to leave his high-paying job in a corporate environment and accept the risk that comes with being in a start-up.
“Which ultimately resulted in financial freedom,” he said.
Understanding the Power of Compounding from the Start
Wilson said: “My father once told me, ‘The sooner you start, the less you’ll have to worry about later.’ He wasn’t just talking about saving, but about the power of compound interest. He said it’s not so much about how much money grows over time that matters, but rather how long.”
By starting to invest modestly early, he began to leverage time to grow his wealth at an exponential rate, even when the initial amounts were modest.
“But it taught me one thing: the real magic happens when you give your investments time to work for you,” he explained.
Focus on value over price
“My mother always told me, ‘Don’t confuse price with value,’” Wilson said. “That’s what guided me in all my financial decisions.”
He said it taught him to look beyond price and consider the long-term value of what is being purchased or invested in.
“Whether it was buying a car, buying a house or even investing in a business, she showed me how to focus on what the purchase was going to do for me in the long run, not necessarily the immediate price it was going to cost.”
Wilson explained that this saved him from many mistakes and also helped him identify appropriate investments that contributed to his financial growth.
Know the difference between financial independence and wealth
“One of the most important lessons my parents taught me was this: ‘Aim for financial independence, not just wealth,’” Wilson said. “For them, money didn’t really mean having money, but the freedom of choice that comes with it—not being tied down by financial burdens.”
This mindset, he explained, led him to create passive income streams that ultimately gave him the freedom to do what he loves without worrying about money.
“It’s not about accumulating wealth, but rather creating a life where your money works for you, not the other way around.”
Understanding the Power of Generosity
“My father used to say, ‘Wealth is not measured by what you have, but by what you give,’” Wilson continues. “That may seem counterintuitive in a conversation about wealth creation, but it had a profound impact on my financial philosophy.”
In addition to enriching his own life, Wilson said practicing generosity has allowed him to build networks and relationships that have a price. Giving of time, resources or money has opened doors and opportunities for him that he could never have accessed through financial investments alone.
“These are lessons my parents taught me, not about how to manage money, but about how you perceive and interpret wealth in your life,” he said. “By understanding the deeper values behind these financial principles, I was able to build wealth that aligned with both my financial goals and my personal growth.”
More from GOBankingRates
This article was originally published on GOBankingRates.com: I’m a Self-Made Millionaire: These Financial Lessons From My Parents Were Essential in Building My Wealth
yahoo
