It is estimated that 70% of families lose their wealth in the second generation. And 90% lose it in the third!

With statistics like that, it can seem pointless to save for a legacy of wealth. However, in many cases, the loss of generational wealth can be prevented through financial education. After all, it is easy to lose generational wealth if your kids have no personal finance knowledge.

That would be like asking your child to maintain a classic antique car after you pass away without teaching them any mechanical skills. It is likely that the car would eventually break down.

In a similar way, if you teach your kids nothing about personal finance, then it is likely the wealth you leave for them will dwindle throughout their lifetime.

Since you are interested in passing on family wealth, then you likely have a fairly good understanding of personal finance. Make it a priority to pass this knowledge down to your kids. This knowledge will be the best way to build and protect generational wealth.

There are many ways to broach the topic of money with your kids. You can buy children’s books about money, teach them through games, or show them by allowing them to listen as you talk through financial decisions. You can even help them to set up their own bank accounts from a young age to instill the importance of saving for the future. Our course on teaching kids healthy financial habits is a great place to find resources to share money knowledge with your kids.

Thank you and have a great day.

Roland Kier
CEO – America’s Best Smart Realty
Principal Broker – Georgia/Florida/Alabama Markets
roland_kier@americasbestsmartrealty.com