How My Dad Taught Me the Compounding Returns of Fatherhood
As Father's Day approaches, I remember how my father's small acts of love and generosity added up over time and influenced my relationships with my own children, proving that the best investments can grow across generations.


Parents intuitively understand the concept of compounding, even if they've never heard the term. Every bedtime story, every patient explanation, every small act of love — they can all add up over decades to contribute to who our children become.
My dad taught me this without ever saying it directly. When I was heading to graduate school at the University of Chicago, he surprised me with a fire-engine red Plymouth Valiant convertible. I was thrilled. What 22-year-old wouldn't be?
Decades later and toward the end of his life, Dad shared a secret: He actually bought that convertible for my mother. She’d always dreamed of having a red convertible. But when I came home that day, so excited to see "my" new car, Mom whispered to him, "Oh, let's just let him have it."

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The Kiplinger Building Wealth program handpicks financial advisers and business owners from around the world to share retirement, estate planning and tax strategies to preserve and grow your wealth. These experts, who never pay for inclusion on the site, include professional wealth managers, fiduciary financial planners, CPAs and lawyers. Most of them have certifications including CFP®, ChFC®, IAR, AIF®, CDFA® and more, and their stellar records can be checked through the SEC or FINRA.
That moment captures so much about being a parent — the plans you make, the sacrifices you don't mention, the joy you find in your children's happiness compounding into something greater than your own desires.
How parenting is like investing
As both a father and a grandfather, I've learned that parenting humbles you the same way markets do. You think you have a model in your head — how you'll handle tantrums, teach life lessons, shape character. Then reality hits.
In the minutes before naptime, you may have about as much control over a determined 2-year-old as you do over the S&P 500. Sometimes that nap never happens. Sometimes the market drops and keeps dropping.
But here's what both investing and fatherhood have taught me: Judge yourself by the quality of your decisions, not just the outcomes. So many things lie outside our control.
Values that carry on
Now I watch my own children at the start of their journey, navigating these same challenges with my grandchildren, and I see my parents' values carrying on into another generation.
David Booth with his own child many years ago.
The patience they show, the sacrifices they make without fuss, the joy they find in their children's happiness — it's the red convertible moment playing out again and again.
In a conversation with my father later in his life, I asked if he had any regrets. He said simply, "I always wished I could have helped you more."
I was stunned. He'd given me everything — including values that have compounded through my entire life. His integrity, his quiet sacrifices, his belief that education could change our family's trajectory — these small daily decisions shaped who I’ve become.
The irony is that Dad did help me more than he ever knew. That convertible wasn't just transportation — it was a lesson in generosity I'd carry forward. Any time I’ve had the chance to help someone early in their career, I amplified what Dad and my mom taught me.
Looking for expert tips to grow and preserve your wealth? Sign up for Building Wealth, our free, twice-weekly newsletter.
And now I see that same generosity in my children — proof that the best investments can grow across generations.
This Father’s Day, let's celebrate all the fathers, stepfathers and father figures whose small acts of love snowball into lasting impact.
David Booth and his dad back in the day.
To my fellow dads navigating the beautiful chaos of parenting: Trust the process. Your children may not remember every bedtime story, but they and their children may carry forward some of the patience, love and values you're investing in them today.
Happy Father's Day to all who understand that love, like returns, compounds most powerfully over time.
Related Content
- 5 Father's Day Gift Ideas That Also Make Good Long-Term Investments
- Five Ways Dads Can Teach Their Kids to Manage Money
- Three Ways to Give to Your Kids Tax-Free While You’re Still Alive
- To Protect Your Kids, Consider These Estate Planning Steps
- Your Home Would Be a Terrible Inheritance for Your Kids
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

David Booth is Chairman of Dimensional Fund Advisors, a firm he founded in 1981. Under David’s leadership, Dimensional has grown from a fledgling business operating out of the spare room of his Brooklyn brownstone apartment to a global investment manager with more than 1,600 employees and $786 billion in assets under management (as of March 31, 2025). David led Dimensional as CEO and later Co-CEO until 2017, when he stepped back from the daily management of the firm. He remains closely involved in strategic initiatives at Dimensional.
-
Stock Market Today: Dow Nears Record High After Verizon Earnings
The Nasdaq also notched a new high on Monday, while the Dow finished with a marginal loss.
-
I Live Next to a Costco Business Center. Here Are 5 Things You Won't Find at a Costco Wholesale
You don't need to own a business to shop at a Costco Business Center. Here are five reasons to visit the one near you.
-
Stock Market Today: S&P 500 Hits High After Verizon Earnings
The Nasdaq also notched a new high on Monday, while the Dow finished with a marginal loss.
-
I Live Next to a Costco Business Center. Here Are 5 Things You Won't Find at a Costco Wholesale
You don't need to own a business to shop at a Costco Business Center. Here are five reasons to visit the one near you.
-
The Five Most Expensive States For Retirees (And How Much Extra You Need)
Outliving your retirement savings is a real fear, especially if you live in these four states and Washington, D.C.
-
Here's Why I'm Dropping Peacock After the Price Hike
Peacock announced it will raise its plan prices starting on July 23. Here's how much they'll charge and ways to save if you want to keep it.
-
Could a Micro-Retirement Be the Refresh You Need?
Don't wait until you turn 65: Why more people are taking "micro-retirements," or short, strategic breaks, years before they retire.
-
What Will the Fed Do at Its Next Meeting?
Rate cuts remain on hold this summer, experts say.
-
How to Tell Your Own Story
Your life told well could be the best gift you can leave.
-
Take It From a Tax Attorney: This Is a Magic Multimillion-Dollar Tax-Saving Strategy
The qualified small business 1202 stock exemption is a $10 million exclusion that seems too good to be true and is often overlooked.