Pillars for Wealth Parenting

One of the topics that draws much interest is the subject of preparing our children to be responsible custodians of the family wealth.

So, how do we ensure a smooth transition of wealth to the next generation? There are many concerns that parents and grandparents share in the management, understanding, and execution when transferring some or most of the assets and money to their heirs.

Will the heirs be able to handle the transition emotionally? What are the challenges with siblings, grand-children and those adopted into the family? How financially intelligent are the heirs in managing their inheritance and have they been prepared mentally and intellectually for the responsibilities of wealth.

Although there are key principles that parents have to distill/instill within their children that are universal to all families, there are those aspects that are unique to each family and cannot be approached through a ‘mass production program’, but should rather be tailored to the specific needs of each family…

The development of the next generation is key to healthy succession because, as we all know, financial success presents both opportunities and challenges. The key is learning how to use money as an empowering tool for the next generation, so they are able to lead fulfilled, content and harmonious life. If they do that, they run their lives. If they don’t, money runs their lives.

Next generation family members must learn how to be emotionally and mentally prepared for the responsibilities that ownership brings. As future custodians, they must acquire the financial knowledge and information, as well as develop the emotional intelligence to be responsible stewards of their wealth.

Parents report being very concerned about the financial, emotional, and mental well-being of their children in a technologically advanced and fast-paced exposure-ridden environment. Parents report struggling not only with traditional peer-pressure but also the additional pressure of social media’s unattainable standards of beauty, material gain, wealth, and fame as the only measure of success.

For information on wealth psychology and succession, or for a financial therapist and inheritance advice  please get in touch here.

Latest Posts

Finance and wellbeing when dealing with the Coronavirus

Worried about family wellbeing or financial consequences because of the Coronavirus? With the continued spread of the Coronavirus putting our oldest and most vulnerable at risk and with more and more of the world’s economy being shut down because of the virus mental...

How can you help your children during Corona pandemic?

How can you help your children during Corona pandemic? During this time, it is important to remember that parents should implement schedules and that routines to be kept as much as possible. Although not a rigid one. Allow room for flexibility connectivity and fun....

How do you reduce stress during times of financial uncertainty?

How do you reduce stress during times of financial uncertainty? Many people feel concerned or experience anxiety due to Corona pandemic. Worrying about what will be, what if, what to do, how will they manage, and more…This is not surprising. The financial uncertainty...

Wealth Transfer and Family Conflicts

Estate planning is both a practical and emotional process. Often with children and inheritance, the idea of when and how to give our money away can make us feel uneasy. It evokes various feelings and highlights our relationship with money, with our children, and with...

CROSSING THE GENERATIONS – Communication Breakthrough

CROSSING THE GENERATIONS - Communication Breakthrough “Dr. Lami this has gotten way out of hand!” said Joel, the 3rd brother amongst the four brothers sitting in my office. “I cannot say anything to Max without him bringing up the past into our conversations and...

Preparing Children to Be Custodians of the Family Wealth

The past 18 months have been filled with speaking and presenting in various forums around the globe on the psychology of Money and Wealth. During this time, the topic that was of main interest with the attendees revolved around the subject of preparing our children to...