For the successful family, at what age is it appropriate to teach your children about your family’s wealth, and more importantly, the responsibility that such wealth carries with it? My view, is you start the process at as early an age as possible. Why? You engage your children with the concept that wealth carries with it responsibility.
Start early. Let us say that your children are elementary school age. You could engage your children in discussions around what money can do. $ 10 for example can protect a family from malaria. Link below:
This suggested discussion is at a level that a child should be able to understand and apply. You could let them make some choices around the donation of a small amount and more importantly, why they are giving the donation.
If your children are older, some families engage the next generation with organized donations and with an even larger donative intent, set up a private foundation or more easily, a donor advised fund.
The intent of all of this is to open the conversation around money, the responsibility that wealth can bring and how wealth can be used productively. Most importantly, when the family fortune becomes theirs (if the plan is to leave it to them), the rising generation has responsibility for the caretaking of that fortune and the beneficial expenditures that can be related to that family wealth.
Start the conversation today and try this, in small steps with your children.
Learn, consider, apply!
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