Financial conversations between parents and their children should start early, according to experts. This is because once children develop negative views about money or fall into heavy debt, it becomes too late to guide and discuss the matter effectively.
Additionally, the expert’s research suggests that individuals who possessed three specific traits from a young age tend to be better earners as adults. With accumulated experience, perseverance, and clear goals, children have the potential to surpass limitations and achieve success and wealth as desired.
A Sense of Deserving Good Things
Believing that one deserves good things is crucial for taking risks and achieving success. Instead of saying “it’s too expensive, I don’t want it,” a person with this mindset will think, “I deserve better.” This is known as a self-fulfilling prophecy in psychology—belief in one’s worth will encourage actions that align with one’s goals.
Take Jordan Belfort, for instance, who, as a child, sold ice cream where surfers gathered. Or Konosuke Matsushita, who, at 11, recognized the demand for straw sandals for miners in winter and worked through the night to meet that demand.
To foster this sense of deserving, parents should refrain from shaming their children for their lack of material possessions. Instead, they should guide them towards planned savings. This will create a positive feedback loop: awareness of worth → seizing opportunities → accessing quality resources → increasing attraction to wealth. Investor Naval emphasizes that if one doesn’t believe they deserve wealth, their bank account will never catch up to their self-doubt.
Foster a Sense of Deserving by Avoiding Shaming and Encouraging Planned Savings
A Growth Mindset
A growth mindset, as studied by Professor Carol Dweck, enables children to face challenges by seeking solutions instead of giving up. In an experiment, children with a growth mindset approached math problems by reviewing their mistakes, while those with a fixed mindset easily became discouraged and made negative self-assessments. A 2019 study published in Nature Human Behavior found that students with a growth mindset earned, on average, 18.3% more as adults.
This mindset transforms “I can’t do it” into “I’m still looking for a solution,” activating a positive feedback loop in the brain: effort – feedback – adjustment. When children believe that intelligence can be improved through effort, they continually expand their capabilities and view failures as learning opportunities. For example, Elon Musk’s SpaceX overcame three failed rocket launches by analyzing the causes and adjusting their strategies. A growth mindset not only propels personal development but also confers significant business advantages, as Wang Xing of Meituan says, “The winner is not the one who starts first, but the one who understands why others fail.”
In summary, a growth mindset is the foundation for turning failures into stepping stones for success.
A Growth Mindset Transforms Failures into Stepping Stones for Success
The Ability to Change Perspectives and Learn from Failure
The ability to change perspectives and learn from failure is key to success. The story of Huo Yuanyan at the age of 13 illustrates this well: instead of forcing farmers to repay their debts, he bought seeds and sold them to the farmers on credit. The farmers then repaid him with seeds and interest after the harvest. In doing so, Huo Yuanyan solved a problem for others while also making a profit. Psychology refers to this as “changing perspectives”—moving beyond one’s personal ego to understand the needs of others.
Research shows that children who frequently play “house” stimulate the prefrontal cortex (for understanding rules) and the temporoparietal junction (for reading others’ minds). These skills are vital in business. Entrepreneurs from Wenzhou, China, often teach their children by having them role-play as suppliers, shop owners, or difficult customers, honing their ability to empathize with others.
Financial transformation occurs through the following steps: empathizing with needs → designing solutions → problem-solving → gaining a competitive edge. Every complaint contains a potential business opportunity. For instance, when a child complains about a borrowed pencil not being returned, parents can suggest solutions like requiring a deposit.
To build a wealthy future, children should develop three qualities: a growth mindset (turning failures into opportunities), perspective-taking (seizing opportunities from challenges), and a sense of deserving (remaining calm in all circumstances). Money is fluid energy; when children learn to face challenges and turn adversity into opportunity, their field will become more positive, paving the way for sustainable wealth.
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