I dropped out of high school before becoming a millionaire at 39. I don’t buy things for my kids so they learn how to save and invest.

Sophie Musumeci says she doesn’t like to buy things for her kids and teaches them how to invest and save

This as-told-to essay is based on a conversation with Sophie Musumeci, founder of Real Entrepreneur Women. It has been edited for length and clarity.

I grew up in a rural part of South Australia, where my dad was a tree harvester. My mom mostly stayed home but worked seasonally at vineyards. In my community, there was a lot of bartering: my dad would swap service instead of money, like giving neighbors a load of firewood in exchange for help shearing sheep.

There wasn’t a big emphasis on education. By the time I was in 11th grade, my school asked me to leave because I wasn’t attending classes. It just wasn’t a priority. It was normal for kids to leave school in grade 10 or 11, get a job, get married, and have a baby.

I started working three jobs when I left school: at the local vineyard, in retail, and at a pub. That’s when I realized that the more I worked, the more I could earn. That unlocked something in me.

I climbed the corporate ladder even without degrees

When I was 18 I moved from my home to the Gold Coast, a much more metropolitan area of Australia. Despite not having a high school or college degree, I started working for a major international corporation and climbed the corporate ladder. I doubled my income every few years and was soon earning $250,000 Australian dollars (about $161,000 US dollars) a year.

When my husband and I decided to have children, we thought we’d do what all our friends were doing. Most families in our circle had two parents with corporate jobs and a nanny. We tried that at first, but when I came home and realized my son had more of the nanny’s mannerisms than mine or my husband’s, I knew I wanted a different option.

I became a millionaire by focusing on being debt-free by 40

When I was 32, I started my business. At first, the business was a financial drain: I had not only lost my corporate income, but I was pouring money into the business. I felt financially dependent on my husband. We had always agreed to keep finances separate, and I had to ask him for money to get my hair done. It was quite humiliating, to be honest.

All the while, I had a goal: be debt-free by 40. When I told my husband this, he laughed. We had just bought a home in Sydney, where the real estate prices rival New York City. Paying that off seemed, well, laughable.

Luckily, my business did well. It grew slowly over time, but then, in 2021 had a big leap after I found a great mentor. The business started having $100,000 AUD (about $65,000 USD) months and never went back. Just before my 40th birthday we paid off our primary residence, the last of our debt. I was a millionaire.

My kids are enrolled in an entrepreneurship school

Now, I’m 42. Money and time are never problems for me. In the corporate world, I made $250,000 AUD, working about 50 hours a week. I have more cash flow and work about 22 hours a week. My lifestyle is completely different, and I’m able to be there more for my kids.

That’s the promise of entrepreneurship. Both my kids, who are 12 and 10, are enrolled in a business school for kids that teaches them about founding companies. They spend about 90 minutes each weekend studying business, and it has a real impact on their lives.

Recently, my 12-year-old made $30 from his babysitting business. He was excited about the money and also about how much fun he had. That is the dream: to be paid really well for something that gives other people value and that you enjoy. I want my kids to think differently about how they can achieve that.

I’m teaching the kids to save and invest, even when I want to buy them things

Since neither my husband nor I grew up with a lot of money, it’s really important to us that our kids know how to manage money and grow wealth. We don’t want them just waiting on an inheritance, which we see from some friends who have generational wealth.

We’re teaching them, starting with allowances and gifts. All monetary gifts from birthdays or Christmas are put into a savings account, and we’re now teaching the kids about investing that money. They also get $20 a month for completing basic chores like taking out the trash. They can use that money for impulse buys like candy or save it, which my son recently did for a new Nintendo game.

Sometimes, I just want to buy them candy or games. I stop myself because letting them understand the value of their money is an important lesson. Hopefully, it will keep them from being financially dependent on me and allow them to grow their wealth long term.