I Asked ChatGPT What the Top 1% Teach Their Kids About Money: 10 Takeaways
Written by
Karen Doyle
Edited by
Cory Dudak
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As parents, we want our children to have a better life than we had, which includes having better attitudes toward money. Who better to take advice from when teaching kids about money than those with a lot of it?
We asked ChatGPT what the top 1% teach their kids about money that you can teach your kids, too. Here’s are some of the main takeaways.
1. Money Is a Tool, Not the Goal
According to ChatGPT’s answers, the ultra wealthy teach not the value of money, but the value of what money can buy. They emphasize that money provides freedom, opportunity, impact, and perhaps most importantly, time. The rich teach their children to ask what problem their money can solve, and to focus on long-term outcomes rather than short-term consumption.
2. Assets vs. Liabilities
Wealthy people teach their children to make the distinction between things that put money in your pocket, like business ventures and equity investments, and those that take money out of your pocket, like cars, designer clothes and other luxury goods. These lessons may start with small businesses, like a lemonade stand, and investing, either by simulation or with a real account.
3. Ownership Is Better Than Income
Families in the top 1% emphasize that having equity is better than drawing a salary, profit sharing is better than hourly wages, and royalties are better than one-time payments. They teach their children that they should own part of what they work on, and think like a partner instead of an employee.
4. Time Is a Scarce Resource
Wealthy parents teach their children that money is renewable, but time is not. This can mean delegating tasks, buying time by paying someone else to do what you don’t want to do, and avoiding low-value tasks. The lesson here is that being effective is more impressive than being busy.
5. Compound Interest Is Sacred
Children of wealthy parents learn that long-term investing is preferred over speculation, and patience is better than brilliance. They learn not to interrupt compounding, but rather to stay invested and avoid catastrophic losses, as well as minimize taxes and fees.
6. Manage Risk, Don’t Avoid It
Wealthy people don’t eliminate risk; they structure it. Children learn to make asymmetric bets that have limited downside but large upside. They learn diversification across asset classes and use legal structures like LLCs to protect against the downside.
7. Lifestyle Inflation Is a Trap
Wealthy families avoid tying their identity to consumption. They live below their investment capacity, but not below income. Major purchases should be justified by their utility, not by their status, and wealth should be quiet and durable.
8. Taxes and Incentives Matter More Than Price
Wealthy parents teach their children about tax efficiency, how incentives reward behavior and how structure rather than effort is rewarded. Their children learn why wealthy people borrow rather than sell, why businesses get better tax treatment than wages, and why laws matter as much as markets.
9. Money Skills Are Explicitly Taught
Wealthy families do not consider money to be a taboo topic. They talk openly about it, share details like balance sheets, and explain both wins and mistakes.
10. Values Outlast Wealth
Wealthy families emphasize stewardship over entitlement, responsibility before inheritance, and contribution as part of their identity. They may require their children reach certain milestones around education or work experience before granting them access to wealth. They may stress philanthropy from an early age, and require accountability rather than rescue.
The core difference between what the 1% and the rest of us teach kids about money, according to ChatGPT, is that most people teach their children how to earn money. The top 1% teach their children how money behaves.
Perhaps most importantly, it’s important to remember that children will model what you do, not what you say, so applying these principles to your own financial life is key to both your and their suceess.
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