Grant Cardone: A Unique Approach to Financial Education for Kids

Grant Cardone, a renowned real estate mogul and business coach, has carved a niche for himself not only in the world of finance but also in parenting. His unconventional methods of teaching financial literacy to his children are gaining attention, especially given the impressive results they yield. Recently, his daughter Sabrina made headlines by earning $7,000 in a single day from passive income investments. But how did Cardone cultivate such financial savvy in his kids at such a young age?

The Foundation of Financial Literacy

Cardone’s approach to financial education is straightforward yet innovative. He believes in putting his children on the family payroll with formal work contracts as early as age six. This practice is not merely a gimmick; it serves as a practical introduction to the world of work and money.

Formal Employment Contracts

According to Cardone, his children have been working since they were six years old, signing actual contracts that outline their responsibilities. This method instills a sense of accountability and professionalism from a young age. “They’re on payroll now. They have contracts. They’ve been working since they were 6,” Cardone explains. This structured approach ensures that the children understand the value of work and the importance of fulfilling commitments.

Earning While Learning

The children earn approximately $35,000 annually for their work. However, instead of handing over the money directly, Cardone invests it in Cardone Capital, his real estate investment company. This strategy not only builds their wealth but also teaches them the principles of investing and the power of compound growth.

Initially, the kids received about $200 monthly from their investments. As their portfolio expanded, so did their passive income, which now reaches thousands of dollars each month. This gradual increase in earnings serves as a tangible lesson in the benefits of long-term investing.

Teaching Financial Independence

Beyond merely accumulating wealth, Cardone emphasizes the importance of financial independence and responsibility. He believes that children should learn to manage their own finances, which fosters a sense of self-worth and accountability.

Real-World Financial Decisions

When his daughter expresses a desire to spend money—like getting her nails done for $80—Cardone’s response is simple yet impactful: “You got your own money. Pay for your own sh*t.” This approach teaches his children that financial decisions come with responsibilities and consequences, reinforcing the idea that they should be in control of their own spending.

Lessons for All Families

While not every family can afford to put their six-year-olds on payroll for $35,000 a year, Cardone’s methods offer valuable lessons that can be adapted to various circumstances. Here are some takeaways for parents looking to instill financial literacy in their children:

Start Early

Introduce financial concepts as soon as children can grasp the idea of money. This could be through simple discussions about saving, spending, and the value of work.

Make Work Real

Assign age-appropriate chores and provide allowances that connect effort with reward. This teaches children that money is earned through hard work.

Teach Investing

Encourage children to set aside a portion of their money for savings or investments, even if it’s just a few dollars. This practice lays the groundwork for understanding how money can grow over time.

Include Them in Financial Discussions

Involve children in age-appropriate business and financial conversations. This exposure helps them understand the real-world implications of financial decisions.

Conclusion

Grant Cardone’s unique approach to financial education for his children is a testament to the importance of teaching financial literacy from a young age. By incorporating real-world experiences and responsibilities, he not only prepares his children for financial success but also instills values of independence and accountability. While his methods may be unconventional, the underlying principles can be adapted by families everywhere, paving the way for a financially savvy generation.