Grant Cardone: Don’t Give Your Kids Handouts — Do This Instead
Written by
Kristopher Kane
Edited by
Molly Sullivan
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Grant Cardone is probably best known for his entrepreneurial efforts. In a recent Instagram Reel, he demonstrated his ability to deliver concrete, no-nonsense financial advice.
“Not every kid wants somebody else’s money,” Cardone shared, dispensing guidance for how money should be managed within a family.
Though he can certainly afford to do so, Cardone doesn’t just hand his kids money whenever they ask. Instead, his approach ensures that his children understand the value of every dollar and appreciate the effort it takes to earn it.
The Family Business
Instead of a typical allowance, Cardone pays his daughter an annual salary as part of a performance-based contract. This arrangement allows Cardone’s daughter to earn an income while learning how her successful father runs his business concerns.
He even writes off her salary as a business expense. But the money doesn’t belong to her free and clear, either. Cardone mandates that the money is invested in various real estate holdings through his company, Cardone Capital. But that money isn’t idle.
Cardone said, “After a period of time, that real estate project starts flipping her a little dough.”
In other words, the periodic investments are generating passive income. He added, “I think she’s at 600 bucks a month right now. That’s what she lives on. Anything above $667, she’s got to come to me for a loan.”
The Value of the Long-Term Lesson
Cardone’s approach might seem unorthodox, but the underpinning motivations are closely tied to the values of self-sufficiency and financial literacy. Cardone understands that when people learn these lessons early in life, they’re primed for greater economic success and financial freedom in their adult years.
Keep It in the Family? How Warren Buffett Approaches Intergenerational Wealth
Warren Buffett is one of the most famous financial gurus of all time. His investment success has garnered him close to $150 billion, which he has vowed to donate. There’s one catch, though: It takes a long time to give that much money away responsibly.
You might think Buffett would leave some of his enormous fortune to his three children, and in a sense, you would be right. But instead of leaving his estate for them to do with as they please, the billionaire has insisted they continue the charitable disbursement of his fortune after his death.
Teaching the Next Generation
Though Cardone and Buffett have different approaches to passing down their wealth, both investors have endeavored to ensure their children understand the lessons required to appreciate the true value of their money. Both encourage the responsible and thoughtful stewardship of their funds and task their descendants with their careful management.
It’s not a bad approach for any parent to follow. Adopting a similar instructive strategy around financial management means involving children in a hands-on, real-world way. Teaching them value — how money is earned, saved, invested or donated — can give kids a significant head start when it comes to handling their own financial futures.
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