Jonathan Sanchez, who became a millionaire at 37, lives with his wife Jacqueline and their two children, aged 9 and 12. His secret to wealth accumulation lies in a frugal lifestyle and smart investments.
To prevent his children from feeling confused or scared about money, Sanchez and his wife have integrated financial education naturally into their family life. "Money isn't a mystery; it's a tool children need to understand and use confidently", he states.
Instead of lengthy lectures, Jonathan opts to repeat five simple phrases to cultivate his children's financial mindset.
"You can earn money even while you sleep"
Upon hearing this for the first time, Sanchez's children were surprised. He explains this concept as compound interest through investing.
The couple started with small steps. When the children receive allowance or birthday money, they set aside a portion to purchase index funds. Sanchez shows his children growth charts and regularly checks their progress. The money then works in the stock market. They discuss whether rising stock prices are good or bad, depending on the decision to buy or sell.
According to Sanchez, making investment tangible transforms saving into a game, fostering children's curiosity and patience.
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Self-made millionaire Jonathan Sanchez and his wife Jacqueline. Photo: Jonathan Sanchez
"Saving helps you avoid future stress"
This phrase encourages children to think long-term. Even before they have to pay for a house or buy a car, children may encounter issues like losing a toy, a broken bicycle, or forgotten school fees. Sanchez teaches his children to prepare for unexpected situations. He advises them to think "when" a problem will occur, rather than "if". This mindset transforms saving into peace of mind.
Sanchez's children often allocate a portion of their allowance to an emergency fund to learn how to handle unforeseen events.
"When my son lost his braces, he offered to pay for new ones himself. We still covered the cost, but used the opportunity to commend his responsibility and remind him of the importance of saving", he explains.
"You don't want to work forever"
This statement prompts his children to reflect. Sanchez notes that working covers essential needs, but the ultimate goal is to reach a point where money works for you.
By investing early, children gain more choices in the future, such as selecting a fulfilling career, dedicating time to family, or retiring early.
He reminds them that increased income often comes with the temptation to spend more. Freedom comes from the power of choice, not from owning possessions. Saving and investing help avoid financial pressure later in life.
"Save to buy what you truly want"
According to Sanchez, the convenience of instant services makes people lose patience. He reminds his children that waiting creates value. Credit cards and "buy now pay later" applications fulfill immediate desires, but debt causes long-term stress.
When his children want to buy something, he encourages them to save rather than use credit. This process teaches discipline. After a few weeks of saving, children often lose interest in the item and choose to keep their money or buy something less expensive.
"Appreciate what you've worked hard for"
When children earn money, good grades, or awards themselves, they value them more. Sanchez's children take care of items they saved to buy because they understand the effort involved.
Saving teaches patience, builds gratitude, and fosters self-confidence. Children learn that achievements require persistence.
"When my child considers a purchase carefully or shows off their savings balance, I know the lesson is working. They're not just saving; they're learning to plan", he says.
By Minh Phuong (Source: CNBC)
