What Do You Tell Children About The Family Wealth?

Can You Relate…

Growing up, your parents decided to keep you shielded from the realities of your family's financial situation, a choice that was deeply rooted in their protective instincts.

They believed that what you didn't know couldn't harm you.

In their eyes, your innocence regarding the family's wealth was a safeguard, ensuring you wouldn't inadvertently reveal anything that could attract envy or lead others to take advantage of you.

This decision, was made from a place of love and concern, undoubtedly spared you from numerous potential complications during your childhood.

But what typically happens for next gens is as you step into adulthood, this veil of financial ignorance began to feel less like protection and more like a barrier.

You begin facing the responsibilities that come with financial independence and you quickly realize that your lack of financial knowledge was not just a minor gap but a significant impediment.

This isn’t about experiencing dramatic financial downturns due to your innocence; it’s about the way this lack of understanding delayed the start of your professional career and affected other areas of your growth.

You see, financial naivety is quite common among those who inherit wealth, often contributing to a postponement in emotional and professional development.

To many, this concern might be perceived as trivial, perhaps even viewed as lamenting over a non-issue given your privileged position.

However, what I’ve experienced with my private clients is that the core issue is the recognition of how an absence of financial literacy, especially among inheritors, can have a profound impact on one's emotional maturity.

This reflection underscores the vital importance of instilling financial knowledge in children, particularly those poised to inherit wealth.

This is part of the work I do inside my 1:1 coaching with my next gen clients who have children.

It's not solely about equipping the future heirs with the skills to manage finances but about preparing them to face the myriad challenges associated with wealth, thus ensuring their development into well-rounded and emotionally mature adults.