Preparing your children for wealth starts long before an actual inheritance – you need to prepare them to manage it with responsibility and perspective, says Shaun Meintjes, Financial Adviser and Franchise Principal at Consult by Momentum.
As financial advisers, we spend a great deal of time helping people build and preserve wealth. I’ve worked with countless clients who have spent decades growing businesses from scratch and nurturing investment portfolios. They are driven and hard-working, and eager to grow and safeguard their wealth. But while they are used to managing their money, they often don’t equip their children to do the same when the time comes.
It’s easy to understand why – no one likes thinking about what will happen when they’re no longer around. But leaving your kids a lot of money without preparing them for it can set them up for failure. You cannot assume the next generation will simply know what to do with wealth they’ve never had to build or think about. They need guidance and perspective, and that starts with honest conversations.
Money shouldn’t be a family secret
The single biggest mistake you can make when discussing wealth and inheritance is not talking about it at all. I’ve sat across from adult children who had no idea their family had significant wealth until a parent passed away, and they were completely overwhelmed. That’s not protection, that’s a failure. I’ve also seen the ones who only ever heard “money doesn’t grow on trees,” with their parents preaching frugality while living lavishly.
