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Ten Ways to Prevent Affluenza

Posted on December 01, 2017

Ten Ways to Prevent Affluenza

From time to time, we come across helpful articles by others that help to explain a best practice in family wealth. We think it is important to share these ideas and best practices among the families we serve.

One of the topics we focus strongly on is providing next-generation education and helping families preserve their family legacy. WealthManagement.com recently published an article outlining some best practices wealthy families can follow to prepare their children for the responsibilities of a life with wealth. While every family is unique, these tips center around building an appreciation for wealth, developing a strong work ethic, establishing financial literacy and cultivating a spirit of philanthropy.

The top 10 best practices include:

  1. Give responsibilities and enforce consequences
  2. Involve children in philanthropic activities
  3. Stress the value of relationships over things
  4. Require children to save for things they wish to purchase
  5. Enroll children in age-appropriate financial literacy classes
  6. Encourage children to secure employment or start their own businesses
  7. Identify advisors that can be trusted to guide children once their inheritances are received
  8. Develop a plan for passing assets in a shielded way
  9. Help children be selective in their choices of friends
  10. Create or update estate planning documents

The article concluded with one of our favorite quotes from Warren Buffet: “A very rich person should leave his kids enough to do anything, but not enough to do nothing.”

To read more in depth about these tips, see the full WealthManagment.com article by John McManus here.

see the full article

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