Millionaire dad-of-four reveals how he teaches his children about money by giving them a monthly 'salary' for chores instead of an allowance

A multimillionaire has revealed how he teaches his kids about money and makes them work for their funds instead of splashing out cash when they want something. 

David Ciccarelli is the CEO and founder of Lake, a company which facilitates waterfront rental properties. 

Prior to building up his rental company, the mogul racked up an overwhelming amount of cash by building a voice-over business with his wife, Stephanie. 

After the husband and wife duo built up serious cash flow, they soon focused on growing their family. And as their funds continued to grow, so did their household. 

Now, David is a dad-of-four with children ranging in age from 12 to 20, however, the father has made it clear that he won't be letting his kids live the lavish life and is forcing them to earn their own money. 

David Ciccarelli is the CEO and founder of Lake, a company which facilitates waterfront rental properties

Nothing comes easy! The millionaire gives his children a salary over an allowance and relates money to the real world

While speaking to Business Insider, the millionaire admitted that he didn't just hand over his hard-earned cash to kids. 

He revealed that he ensured his four children weren't given an allowance, but were given 'a salary.' 

The CEO, who became a millionaire aged 30, said: 'I hate the idea of allowance being given rather than earned, but I also dislike the transactional nature of doing chores strictly to get money. ' 

David noted that he wanted his children to learn to 'contribute to the family's well being.' 

He explained that he would gladly pay for his children's needs, such as food or clothes. 

However, he refuses to spend funds on their wants, like a pair of trendy sneakers. 

The business mogul told the outlet: 'I distribute money monthly — they get a dollar a week for each year of their age — as long as the kids are doing things around the house as needed. ' 

He also shared that he often related money to the real world by showing his children how it worked. 

The millionaire ensure that his children used their own debit card and entered their pin when purchasing something so that they got used to the world. 

His children even learned to invest their own money into companies they were interested in, such as Tesla and Disney.  

While speaking to Business Insider, the millionaire admitted that he didn't just hand over his hard-earned cash to kids (stock image)

Put your brain to work! The dad rewards problem-solving 

In addition to thinking of their money distribution system as a salary, the dad also rewards his children when they problem solve. 

When the CEO's kids want some extra spending money, David makes them work for it. 

If his children put their minds to work, he said that he would pay up. 

He explained: 'For example, one of my daughters once noted our doors were squeaking, so she asked if I would pay her to fix them. 

'I was happy to hand over the WD-40 — as well as the money, once the job was done.' 

The millionaire said that he made his kids brainstorm and solve issues so they could learn that they didn't just get money if they asked. 

Sharing is caring! Teaching his kids to give and save their money 

David (seen with his wife) also prioritized teaching his children about the importance of money - specifically the three uses of funds

David also prioritized teaching his children about the importance of money - specifically the three uses of funds. 

The dad-of-four has raised his children to understand that money should be used in these three ways: giving, saving, and spending. 

'The kids have always been taught to do all three,' he said. 

David added that he didn't give them a specific amount or percentage of how much to give, save or spend because he wanted them to decipher for themselves.

Throughout the years, he has seen his kids take on these values. 

The millionaire gave the outlet an example of his then 11-year-old daughter giving half of her $20 bill to a homeless person. 

Create your own path! The millionaire helps his kids find their passions 

David makes sure that he doesn't push any of his own spending interests on his children by helping them foster their own passions. 

He added: 'One of my daughters realized she wasn't too interested in researching the companies she might invest in. 

'So, I showed her an alternate path: index funds, which allow you to hold a small piece of many companies.' 

The CEO explained that this helped his kids focus on what they considered important. 

'We are frugal': David ensures that his children don't waste 

Lastly, the CEO makes sure that his children don't ever waste their funds or their goods (stock image) 

Lastly, the CEO makes sure that his children don't ever waste their funds or their goods.

He explained that when his kids purchased something, they had to donate one of the items they already owned. 

'We also are frugal about our meal planning, often intentionally cooking extra so we can save time and money by eating leftovers for lunch,' he said.

'As a parent, I believe in talking about your financial values with your kids. If you don't, society will fill the silence, often with things you don't believe in.'  

The dad-of-five revealed that two of his kids have moved out and have used his tips to become financially independent.