In this episode of Success That Lasts, Jared Siegel discusses how families can prepare their heirs for wealth. He talks about the challenges involved in raising children in wealth, and how to combat them.
Tune in here, at delapcpa.com/podcast, or wherever you listen to podcasts:
Here are a few highlights:
- “Money has the power to buy one's way out of trouble and mitigate both a lapse in judgment and offset a lack of effort,” Jared says. “When this characteristic impacts the younger generation, it insulates them from the natural consequences that we all learn from.”
- It’s challenging for parents to find the balance between making a child's life too easy and overloading them with unnecessary difficulties. There’s no surefire way to prepare heirs who are empowered by wealth rather than entitled by it. One suggestion Jared makes is to personalize the wealth conversation to each specific child.
- “None of us had the opportunity to pick our parents, thus being born into a wealthy family is more luck than skill, [yet] some studies have found that those that inherit wealth posture as though they deserve the wealth or earned it,” Jared shares. Teaching gratitude is a good way to prevent this.
- There have been instances where recipients of sudden wealth who weren’t ready to receive it became resentful and thought of it as a burden they didn’t want to carry. Jared encourages wealth creators looking to leave money to their family to start small, as the wealth creators acquired their earnings gradually themselves.