Epic Riches to Riches Story: The Rockefellers
- Will Rainey
- Oct 3
- 6 min read
Updated: Oct 4
I really enjoy sharing real-world money stories with my daughters.
One of my most popular blogs was about the Vanderbilts. They were once the wealthiest family in the world in the 1800s. However, as they never looked after the money, most of it was gone within a few generations.
👉 Learn more (click to read later): Epic Riches to Rags Story: The Vanderbilts
This week, I shared with them the story of another family: the Rockefellers. They were once among the richest families in the world too. But unlike the Vanderbilts, their story is about how to build wealth that lasts.
The Rise of John D. Rockefeller
John D. Rockefeller was born in 1839 into a modest family in New York. From an early age, he showed a fascination with numbers and business. At 16, he worked as a bookkeeper, where he became known for his discipline and focus on saving money. He kept detailed records and was always looking for ways to cut waste.
In his early 20s, Rockefeller saw an opportunity others missed. Whale oil was becoming more expensive and scarce. Meanwhile, crude oil could be refined into kerosene, which was cheaper and easier to produce. Rockefeller believed oil would power the future.
Side note: My daughters were shocked that whale oil was once used as a source of fuel, especially for lighting. I explained that it was the biggest industry in the world at one time, but within years of refined oil and electricity coming along, it became worthless. This is an important money lesson, especially when talking about investing, as even the biggest industries can disappear if something new comes along.
At just 24, Rockefeller co-founded an oil refining business in Cleveland. Rather than gambling on drilling for oil, he focused on refining it and making the process more efficient. He reinvested his profits again and again. This discipline helped his company grow quickly.
By the 1870s, Rockefeller had built Standard Oil, the largest oil company in America. At its peak, Standard Oil controlled more than 90 per cent of the U.S. oil industry. By the early 1900s, Rockefeller was the wealthiest person in the world. In today’s money, his fortune would be worth more than 400 billion dollars.
Ruthless Tactics
Whilst there is a lot to admire about how Rockefeller saw an opportunity and took it, he used some ruthless tactics, which meant he was not admired by all.
Some of these tactics included:
He made secret deals with railroads to get cheaper shipping rates, which gave him a big advantage.
He bought out competitors—sometimes offering fair prices, but other times using price wars to force them to sell (e.g., temporarily lowering the cost of oil in areas near competitors so he would get all the business).
He created such a powerful monopoly that in 1911, the U.S. government forced Standard Oil to break up under antitrust laws.
Many people called him a “robber baron” and accused him of crushing competition. At the same time, others argued that his efficiency actually lowered the price of oil, making light and energy affordable for ordinary families.
From Empire Builder to Philanthropist
Later in life, Rockefeller shifted his focus from building his empire to giving back. This might have been a response to his unfavourable reputation as a ruthless businessman. He gave away more than 500 million dollars, which was an unimaginable sum at the time.
He founded the University of Chicago, which went on to become one of the top universities in the world.
He set up the Rockefeller Foundation, which funded medical research and helped eliminate diseases like hookworm and yellow fever.
He supported schools, libraries, and public health programs across the country.
From One Generation to the Next
John D. Rockefeller died in 1937 at the age of 97. He passed his wealth to his children and grandchildren.
The big difference between the Rockefellers and the Vanderbilts was how they handled their wealth after the first generation.
The Vanderbilts didn’t look after the inherited money and essentially squandered their vast fortune.
Rockefeller, however, did not just hand out money to his children and grandchildren. Instead, he created Trusts.
I explained to my daughters that a trust is a way of holding money or property so that it is protected and managed properly. Think of it like a locked treasure chest. The family can use the money inside, but the rules for how it is spent are already set, which helps prevent waste.
Rockefeller also helped set up one of the first Family Offices. Again, I explained to my daughters that a family office is a group of advisers who help manage a wealthy family’s money and investments, and even teach future generations how to look after it. Instead of leaving it to chance, Rockefeller made sure there was a team in place to guide his descendants.
Rockefeller used his money to look after his family and others, rather than to show off. He ensured that his values were passed on over time.
This is why, unlike the Vanderbilts, the Rockefeller family is still wealthy today. Seven generations later, they remain influential and known for their philanthropy.
One of the blogs I’m currently writing is about succession planning, so make sure you subscribe so you don’t miss it.
I'm sure that if John D Rockefeller were alive today, he would have signed up for the Wealthy Kids Program to help his children look after their money
3 Money Lessons for Kids
There are many money lessons I wanted my girls to take from the Rockefeller story:
1 - Rich vs Wealthy: It was another opportunity to talk about being wealthy. Rockefeller cared more about looking after his money for his family and charity, now and into the future. He didn’t care about appearing rich or spending money to impress others. In fact, Rockefeller was known for being frugal with his money.
👉 Learn more (click to read later): Rich Kids vs Wealthy Kids
2 - Charity: By looking after your money, you create an amazing opportunity to not only look after yourself and your family but also others who might not be as fortunate. His wealth is still helping many people today, many years after his death.
👉 Learn more (click to read later): How Charity Can Make You Richer
3 - Entrepreneurship: Whilst I don’t want my daughters to follow the ruthless business mindset that Rockefeller adopted, I do want them to be on the lookout for what is changing in the world and to always be alert to potential opportunities to solve new problems and create something new.
👉 Learn more (click to read later): 5 Mini-Business Ideas for Kids
Would You Trade Places With Rockefeller?
As I was talking to my daughters about Rockefeller, I asked them the question that has been quoted by Warren Buffett:
Would you swap places with Rockefeller and be the richest person alive in the early 1900s?
This is a really interesting question because there would appear to be a lot of perks to being the richest person in the world. However, the average person today probably has a higher standard of living than Rockefeller experienced in his lifetime.
At that time, Rockefeller might have had a nice house, but he also had:
Limited electricity.
No running hot water.
No antibiotics or modern medicine.
No planes, internet, or phones for much of his life.
This is an important lesson about gratitude for the things we have now. It’s so easy to compare ourselves to others today, but as soon as we compare to the past, there is so much to be grateful for.
Final Thought
Sharing real-world money stories with your kids can help open up new money-related discussions in an engaging way. I hope you share this story and they get inspired to look after their money.
👉 What to read next …
How fast can money grow? (Popular)
Rich Kids vs Wealthy Kids (Essential)
Next week, I’ll be sharing the amazing lessons from the Girl Scouts selling cookies. Make sure you subscribe so you don’t miss out.
Thanks for reading!
Will
P.S. If you’d like your kids to be as wealthy as Rockefeller, grab them a copy of my best-selling book, Grandpa’s Fortune Fables. Available on Amazon or as part of the Wealthy Kids Program.
