Thursday, June 29, 2017
Preparing Heirs for Successful Wealth Stewardship
There is a plethora of research available detailing the difficulty of maintaining wealth through multiple generations. This simple fact highlights the importance of teaching children to be competent financial stewards. Claudia Sangster, Northern Trust’s director of Family Education and Governance, encourages families to introduce children to monetary concepts at an early age. With young children, Sangster promotes using day-to-day activities, like grocery shopping, to teach the value of money. Parents explaining their reasoning behind certain product choices may help children in understanding the differences between price and quality and how these characteristics affect decisions. As children get older, implementing an allowance opens up an avenue for independent spending. Sangster suggests structuring the allowance by placing it in three jars: one for spending, another for saving, and the final for giving. Whatever your personal or family philosophy regarding money, bring your children into that discussion so they are aware of the expectations and can plan more strategically for their own future.
See Preparing Heirs for Successful Wealth Stewardship, Wealth.
Special thanks to Joel C. Dobris (Professor of Law, UC Davis School of Law) for bringing this article to my attention.