For many wealthy individuals, having access to financial literacy early on is an essential part of their success. And a lot of that is often passed on by their parents while they’re growing up.
GOBankingRates spoke with self-made millionaires Matthew Wilson, financial expert and CEO of Handy Gardeners, and Kenan Açıkelli, CEO of Workhy, to discuss the top money lessons they learned from their parents that were key for building their wealth.
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“The money lessons I learned from my parents while growing up set a base for the accumulation of wealth, but most of them were not of the typical advice one usually hears,” said Wilson.
Read below for the most impactful insights that helped both millionaires set their financial journeys in motion.
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Save With Purpose, Spend With Intent
“My parents stressed the need to save money,” said Açıkelli. “However, savings had to be funneled in a productive way, like education, investment or emergency funds.”
It was his parents’ belief that saving in its own right does not help, but rather, aiming toward specific financial undertakings is enough in itself.
“This lesson shaped how I became a manager of money and a strategic thinker on resource allocation, as well,” he added.
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Get Knowledge First — Before Any Other Thing
Açıkelli’s father told him that virtually all wealth was meant to create sustainability in times of crisis and continuing education is important, no matter your age.
He said this principle propelled him into investing a lot of money in education and other forms of self improvement, which he believes played an essential role in his life.
“And every time I have felt inadequate in that aspect, there has always been something: a new skill, an industry or a principle in demand,” he said.
Calculated Risks Should Not Be Shunned
As he grew up, Açıkelli witnessed his parents implement strategies to try and better the family’s well being, even if a risk was needed. “From setting up a business kit to purchasing a plot, my parents have taught me that there is a need to calculate risks before a risk is undertaken in order to reap considerable financial returns.”
This lesson empowered him to quit his decent paying job in a corporate environment and embrace the risk that comes with being in a startup venture.
“Which, in the end, resulted in financial freedom,” he said.
Understand the Power of Compounding Early
Wilson said, “My father once told me, ‘The sooner you start, the less you have to worry later.’ “He wasn’t talking about saving alone but about the power of compounding. He said it isn’t so much about how much money grows over time; the most critical element is time.”
By starting to invest small early, he began leveraging time to grow his wealth at an exponential rate, even when the initial amounts were modest.
“But this taught me one thing — the real magic happens when you give your investments time to work for you,” he explained.
Prioritize Value Over Price
“My mom always said, ‘Don’t confuse price with value,’” said Wilson. “This served as a guide in every financial decision I made.”
He said it taught him to look beyond the price tag at the long-term worth of what is bought or invested in.
“Be it when purchasing a car, buying a house or even investing in a business, she showed me how to focus on what that buy was going to bring me in the long run, not necessarily the immediate price at which it came.”
Wilson explained this has saved him from many mistakes and also helped him to really pinpoint the proper investments that contributed to his financial growth.
Know the Difference Between Financial Independence vs. Wealth
“One of the most profound lessons my parents ever taught me was, ‘Aim for financial independence, not just wealth,’” Wilson said. “For them, what money really meant was not to have it, but that freedom of choices [that] came with it — not being tied down with financial burdens.”
This mindset, he explained, led him into the building of passive income streams that eventually gave him the freedom to do what he loves without fear for money.
“It’s not about amassing wealth, but rather creating a life in which your money works for you, not the other way around.”
Understand the Power of Generosity
“My father used to say, ‘Wealth is measured not by what you have but by what you give,’” Wilson continued. “This may sound counterintuitive in a conversation about wealth-building, but it had a profound impact on my financial philosophy.”
Besides enriching his own life, Wilson said practicing generosity built networks and relationships that had a price tag on them. Giving through time, resources or money opened doors and opportunities that he said he could never have accessed through financial investments alone.
“These were lessons from my parents, not on how to manage one’s money but on how one views and interprets wealth in his or her life,” he said. “By understanding what deeper values lay beneath these financial principles, I was able to build wealth that aligned with both financial goals and personal fulfillment.”
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This article originally appeared on GOBankingRates.com: I’m a Self-Made Millionaire: These Money Lessons From My Parents Were Key in Building My Wealth
