Let’s cut to the chase! What do 1,000 data points and 40 years of research reveal as the number one predictor of financial success for kids? (Drum roll, please) Emotional Intelligence! While academic performance, work ethic, and neighborly love are all important, the most important factor is whether kids understand their emotions and can manage their reactions to their emotions constructively.

Here is even better news: emotional intelligence, or EQ, is a skill that can be developed and fine-tuned with intentionality. It is the ability to understand and, if necessary, override your feelings and impulses.

For instance, take the famous “marshmallow test” which asks kids to resist eating a tasty marshmallow for a few minutes in order to get two marshmallows later. Could you do this? Possibly now with time and maturity, but could you have done it when you were younger and developing? The research from the marshmallow test showed that self-control is not only a personal trait but can also be influenced by external factors such as parenting, education, and early intervention.

When it comes to accumulating wealth or starting a business, having the discipline to “delay gratification” is one of the most important life lessons we can teach our children. Delaying gratification requires having self-control, which in turn allows one, financially speaking, not to spend frivolously or excessively. Business-wise, starting your own business or entering the family business can require not doing what everyone else is doing and may take time to experience the fruits of your labor. However, in the long run, by delaying the immediate returns, there is a good chance this discipline will result in immeasurable personal and financial rewards.

As parents, we can help develop self-control skills in our children in some of the following ways:

The bottom-line, an equally and maybe even more important skill we should be helping our children develop is their emotional intelligence. Emotional intelligence is more than just being nice or even keeled. In fact, it could be the basis for intentionally developing adults who have a high level of cognitive control.

Should you have any questions or want to discuss this topic further, please don’t hesitate to reach out to a member of the Saling Wealth Advisors team.

This material is not financial advice or an offer to sell any product and is not a recommendation to buy or sell any particular security. The opinions expressed are those of the Saling Wealth Advisors’ Management Investment Team and are subject to change without notice.

Saling Wealth Advisors (“SWA”) is an independent SEC registered investment advisor. Registration does not imply a certain level of skill or training. This material is provided for informational and educational purposes only. More information about SWA including our advisory services, fees, and objectives can be found in our Form ADV Part 2A, which is available upon request.