Grant Cardone, real estate mogul and business coach, has taken an unusual approach to raising financially savvy kids — one that’s already paying off big time for his children.
According to Cardone, his daughter Sabrina recently earned $7,000 in a single day from passive income investments. But how exactly are his kids building this impressive income stream at such young ages?
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Employment Contracts at Age 6
The strategy is surprisingly straightforward. Cardone puts his children on the family payroll with formal work contracts from as young as 6 years old.
“They’re on payroll now. They have contracts. They have work contracts. They’ve been working since they were 6,” Cardone explained.
These aren’t pretend jobs either — the kids sign actual contracts with specific responsibilities they’re expected to fulfill.
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Converting Salary to Investments
Here’s how the system works: His kids sign actual employment contracts with specific responsibilities. They earn approximately $35,000 yearly for their work. Instead of giving them the money directly, Cardone invests it in Cardone Capital, his real estate investment company. From there, the investments generate monthly passive income that grows over time.
Financial Independence Starts Early
When they first started, the kids received about $200 monthly from their investments. Now, as their investment portfolio has grown, so has their passive income — reaching thousands per month.
Beyond building wealth, he believes this teaches his children financial independence and responsibility.
“I don’t buy their stuff. They buy their stuff and it makes them feel better about themselves,” Cardone said. When his daughter wants to get her nails done for $80, his response is simple: “You got your own money. Pay for your own sh*t.”
The Takeaway
While most families can’t put their 6-year-olds on payroll for $35,000 a year, there are valuable lessons in Cardone’s approach: Start early with financial education as soon as kids understand the concept of money. Make work real with chores and allowances that teach the connection between effort and reward. Teach investing by helping kids put aside some portion of their money, even if it’s just a few dollars in a savings account.
Essentially, the idea is to show your kids the real world by including them in (age-appropriate) business and financial discussions.
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Sources
Instagram, Grant Cardone
This article originally appeared on GOBankingRates.com: This Is How Much Grant Cardone’s Kids Earn in Passive Income (and How)
