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How Does a Millionaire Discipline His Kids?

Brian Hagiwara

Rich or poor, we all want to raise kids with good values. But for wealthy parents, that can be uniquely challenging. How do you teach kids who have it all that they can’t always have everything their way? We caught up with Stephen Cloobeck, CEO of Diamond Resorts International and father of three to find out how a multimillionaire handles the challenge.

“My wife came up with this unbelievable jar system to help the kids focus on what’s important each and every day. We have three children so we have three glass cookie jars, and poker chips in three different colors, one for each kid. And for making their bed in the morning they get a token. For doing yard work they get a token. For clearing the table, doing their homework on time, they get a token. What happens if they do something wrong? So if one boy hits, or chokes the other, or spits—or farts, because that’s not gentlemanly—they lose tokens. And it’s punitive. You may get one token for doing something right, but for something wrong you lose five or ten tokens. And most importantly, it’s not the adult who removes the tokens. It’s the child who has to reach in the jar and remove the tokens. The tokens are redeemed for things like buying videos, buying games, buying apps. It’s a great way to reward your child and to teach them not only the value of a dollar, but the ramifications of being disruptive. It’s like Pavlov and his dogs!”

PS: If you want to see Cloobeck in action, check out the premiere of Undercover Boss on CBS, airing Sunday, January 15 at 8/7 pm.

What do you think? Would this discipline tip from the super-rich work for you?