IF you take a second to trace the history of the majority of Jamaicans you quickly realise that most of us would have started from very humble beginnings. A lot of the successful people you see now are self-made. It is only natural that having become successful you would want to give your children opportunities that you didn’t have. However, if this is done incorrectly, it can have the exact opposite effect of what was intended. All the qualities that made you successful, may be severely watered down in your children, even children who, for the most part, take after you.

HUNGER FOR SUCCESS

This is very real for people who have actually known hunger or poverty — the wish to never go back to that place can bring about a powerful drive for success. However, your children more than likely will never know what it’s like to be in need, leaving in place a wish to please their parents, but without that driving force to succeed.

This is why you often have entrepreneurial parents with children in safe/conservative professions.

ENTREPRENEURIAL SPIRIT

It is so important on a collective and individual basis to encourage entrepreneurship in your children. When they are young and have discovered something that their classmates wish to buy, encourage them to explore the business spirit.

Unfortunately, a lot of the traditional professions aren’t paying much money, so people still stuck on these may be disappointed when the rewards are few.

Certain cultures have a stronger business sense than others. As Jamaica continues to improve on the bureaucracy, let’s hope that parents will encourage their children to take more chances and open more businesses.

STEWARDSHIP OF WEALTH

Easy come, easy go! Have you ever seen anyone drive their brand-new luxury car? Do you notice how not even a splash of dirty water is welcome?

Contrast this with certain drivers on the road, isn’t it clear that they don’t own the cars?

When someone has worked hard for something they naturally take very good care of it. This is why sometimes older people are characterised as stingy or mean, but, in reality, they know the blood, sweat and tears behind acquiring each good.

Likewise, giving too freely to children can have disastrous consequences if overdone.

MESSAGE TO PARENTS

Even with certain obvious advantages it is still possible to raise children who are ambitious and driven.

Making them earn their rewards is one way. Incentivising the right behaviours is another.

Managing money is no different from any other discipline. It must be learned. Children should be given an appropriate amount of money at each stage of their development. As they master one level, they can get bumped up to the next.

It is okay to talk to your children about money from an early age. The point is, you can’t just expect that as adults they will magically know what to do if they haven’t been trained and mentored from their school days.

Let’s assume you have made some investments in their names, for example stocks. They should be monitoring their own portfolio, even if they don’t have any control over it, from high school. Once you develop that passion for investing, it is almost impossible to undo.

There are trading websites that allow you to set up a demo portfolio where you can input the stocks you would want to buy and then track the performance without actually buying anything. This is a great way to put your toes in the water without getting them wet. As they get more confident in their decision making, they may surprise you with their investment prowess.

In addition, take them with you when you are going to visit your investment advisor. But do not disclose your investments, this is just so that they can learn the ropes.

Take heart that many of the super-rich were from either upper middle-class or upper-class backgrounds, for example Elon Musk (Tesla), Bill Gates and many more.

You can be the best teacher for your children as this is the best way to build a lasting legacy. The idea is that each generation should be creating more wealth for the next, but it can only work with the proper training of each generation.

MESSAGE TO CHILDREN

Your parents did not achieve everything overnight. When you see them, it is many years after their success. You may have to slow down and take a more measured approach.

It is very useful to ‘interview’ your parents. Ask them what made them choose their career paths, how did they know which decisions to make.

What makes them so disciplined about their investment choices? What would they do differently? And what is their advice to you now?

If you listened to Minister of Finance Dr Nigel Clarke’s budget presentation you would (hopefully) have been very heartened by the announcements. As Jamaicans, we have not witnessed much in the way of stimulus budgets. However, the textbooks will tell you, particularly regarding real estate, that the reduction in transfer taxes is likely to stimulate demand, which naturally will increase prices.

As you study various developments, you really need to look way ahead and check how you can take advantage of opportunities before everyone else gets on board.

Yanique Leiba-Ebanks, CFA, FRM is the AVP, Pensions & Portfolio Investments at Sterling Asset Management. Sterling provides financial advice and instruments in US dollars and other hard currencies to the corporate, individual and institutional investor. Visit our website at www.sterling.com.jm Feedback: if you wish to have Sterling address your investment questions in upcoming articles, e-mail us at info@sterlingasset.net.jm.