Most of my boomer friends worry about their children. Some of my friends are better off financially than others, but everybody wants to give their best to their offspring.
I, therefore, read with interest Thane Stenner’s bylined article in The Globe and Mail. Mr. Stenner is founder of a well known investment and wealth management firm and author of True Wealth – naturally, he has a strong understanding of high-net-worth individuals. He pointed out that even though a lot of his clients come from different backgrounds, there is a common thread that draws them together: fear for their children. They all worry about whether their kids will be as successful as Mom and Dad. Whether their children will have a healthy attitude toward money, spending it and be financially responsible.
According to The Globe and Mail, a recent survey by private banking giant U.S. Trust polled 457 Americans with at least US$3 million in investable assets between January and March. Only a third of parents strongly agree their children will be able to effectively handle the inheritance left to them, while just 36 percent strongly agree their children will be able to work together to make decisions to manage the family wealth after their parents are gone. More than half of those surveyed have not fully disclosed their wealth to their children, and another 15 percent have disclosed nothing at all because of concerns about how it might affect their children’s lives, or fears that the children may squander the family wealth.
In addition to exemplifying this behaviour, my boomer friends have an additional worry – most fear that their children will not be able to find a good job or will not be able to accomplish as well professionally as the parents do. I’m not a parent, and will never attempt to advise my friends or anybody on parenting. But from what I have observed as a common behaviour among young people, I have to agree with Mr. Stenner that most kids, particularly teens and tweens, learn more by doing something than by listening to a lecture from Mom and Dad.
So Mr. Stenner suggested a philanthropic vacation – a trip where the family helps others by volunteering for an important cause. This is an excellent way to teach kids about the responsibilities that come with great wealth. It gives privileged kids a sense of accomplishment and purpose.
Forget privileged kids! I think this is a very good idea for kids coming from different backgrounds. Boomers’ kids are generally over-protected and over-sheltered. Unless young people come to realize that they should never take their wealth, affluence or financial stability for granted, they would never mature and come to grips with the harsh reality of life.
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