The Power of Learning About Money Early On: A Lesson from Harvard-Trained Investor

Alexa von Tobel, a highly educated investor from Harvard University and the founder of Inspired Capital venture fund, expresses regret that she did not learn about the compounding of investing at a young age. She considers this financial lesson to be essential in developing the capacity to handle money wisely. Not having received any formal education on personal finance as a child, von Tobel emphasizes the significance of comprehending the value of delaying gratification and making informed decisions to accomplish long-term financial objectives.

Von Tobel’s individual encounters with money, especially during her childhood, and her accomplishments as a fintech founder and investor drove her to create a children’s book titled “Growing Up Powerful: Money Matters.” The book, scheduled for publication on March 26, is designed to educate children about personal finance, the aspects of earning, saving, and spending money, and it includes an entire chapter on investing.

By stressing the importance of delaying gratification and making wiser choices, von Tobel aims to empower children and instill intelligent and responsible money habits at an early age. She believes that children must perceive money as a potent tool that can transform their lives if managed effectively. This, in turn, would enable them to associate money with empowerment rather than stress as they mature into adults.

According to von Tobel, understanding the compounding of investing and the value of delaying gratification are fundamental skills that can significantly influence an individual’s financial well-being, and she aspires to impart this knowledge to children through her book.

The book provides valuable teachings for children and teenagers on a variety of personal finance subjects, such as setting savings goals, devising a budget, or even crafting a business plan. Von Tobel’s approach is geared towards helping children appreciate the notion of having their money work diligently for them in the long term.

Von Tobel maintains that financial literacy is a “highly powerful concept” that should be instilled in children from a young age, as she views it as a skill set essential throughout their lifetimes. She believes that teaching children about delaying gratification, making wiser choices, and understanding trade-offs is critical for establishing a groundwork for long-term financial success.

Beyond her book, von Tobel underscores the importance of guiding children to comprehend that they can make their money work diligently for them, a concept that transcends traditional financial teachings. To her, it is about inspiring children to view money not as a source of stress, but as a tool for fulfilling the life they desire.

In conclusion, financial education from a young age can profoundly impact an individual’s approach to money and financial decision-making. Alexa von Tobel’s book serves as a valuable asset for both parents and children, marking the commencement of their quest to develop a healthy relationship with money and financial empowerment.