Passing it on

In One Sentence

What a family should really pass on isn't an inheritance, but the ability to understand money, save it and put it to work — something that can't be spent down or taken away.

Why It Matters

I wrote this book for my family because the money you leave your children will run out, while the ability to understand money lasts a lifetime and can be passed on again. Many parents feel it's too early, or too crass, to talk with children about money. But the sooner you let your children watch their own account go up and down, the sooner they learn to see the world through an owner's eyes.

One Number

Invest NT$2,000 a month for a child from birth, assume an 8% annual return, and after 80 years it comes to about NT$146 million (nominal amount, author's estimate · Chapter IV).

In the Book

The Preface says it right up front: this book is written for my family. Chapter II shows you how to open a brokerage account for your children while they're young, turn their red-envelope money and prize money into assets that grow, and watch the ups and downs together with them.

Go Further

• Financial literacy The heart of what to pass on is the ability to understand money, not the money itself.
• Kim Seung-ho I first got the idea of opening accounts for children from his book.
• Broad-market index ETFs A child's account holds mainly broad-market ETFs, so from an early age they own a piece of hundreds of companies.
• Simplicity The method you pass on to your children should be as simple as possible.