multi generation family

By Kelley Muhsemann
Marketing Manager

A study conducted by the Williams Group found that a staggering 70% of wealthy families lose their wealth by the next generation, with 90% losing it the generation after that. Another study found that 78% of wealthy individuals feel that their heirs are not financially responsible enough to handle an inheritance.

However, a recent survey found that 84% of high-earning and high-net-worth Millennials (those born between 1981 and 1996) are very concerned about their long-term financial security, but simply don’t know where to start.

In a world where financial landscapes are ever-evolving, the importance of equipping the next generation with the knowledge and skills to navigate money is crucial – and contrary to popular belief, the next generation is eager to learn.

The gift of financial education goes beyond the traditional presents we exchange during holidays or special occasions, it is a lasting investment in the future well-being of your family and your legacy. Let’s explore five best practices for sustaining family wealth across generations.

  1. Start Early: The sooner you start teaching children about money, the better. Research shows that kids as young as three years old can grasp basic financial concepts. By incorporating age-appropriate lessons into their lives, you’re laying the groundwork for future financial success. If your children are already adults, it’s not too late to promote financial literacy and provide education on wealth management. Don’t stop there – remember financial education is important for grandchildren, or nieces and nephews, too.
  2. Introduce Practical Life Skills: Practical life skills are invaluable in the real world, and often not taught in school. Showing your next generation how to create a budget, save for goals, and distinguish between needs and wants prepares them for the financial responsibilities they will ultimately face. These skills not only contribute to their personal financial success but also foster a sense of responsibility and independence. Ask them to download our free Budget Worksheet to get started.
  3. Navigate the Digital Landscape: Understanding the ins and outs of online banking, digital transactions, and cryptocurrency is becoming increasingly important. Help your heirs navigate the digital financial landscape to ensure that they can handle the technological aspects of modern finance safely and effectively. To help protect your wealth, be sure to discuss well-known scams, the dangers of day trading, and the importance of researching any offers or opportunities that seem “too good to be true.”
  4. Communicate: Sixty percent of wealth transfer failures are caused by communication breakdown, and 64% of wealthy individuals have divulged nothing about their wealth to the next generation. Perhaps you feel it’s none of their business, or maybe you’re trying to instill a good work ethic, but unfortunately lack of communication promotes ignorance. It’s important to be somewhat transparent about money with your heirs, and include them in things like estate planning, and discussion of wills. The goal is to make sure your wishes are well-known, and your financial knowledge and strategies for building wealth are passed down.
  5. Ask for Help: We offer a complimentary consultation to our client’s friends and family. Have your children or grandchildren contact us today to discuss their financial future. We can help educate them on the importance of partnering with a fee-only financial advisor, and we can ensure that their finances align with their goals. Click here to get started.

The gift of financial education keeps on giving by nurturing a generation capable of achieving financial independence. Teaching your heirs about investing, retirement planning, and entrepreneurship, can help open doors to opportunities for financial growth. Encouraging a mindset of financial independence empowers them to set and achieve their financial goals, creating a ripple effect that can last for generations to come.

If you would like to speak with our team of CERTIFIED FINANCAL PLANNERTM (CFP®) professionals, we would be happy to show you and your loved ones how our financial planning process can help you stay on track and achieve your financial goals. Please contact us for a complimentary discovery call at 631.218.0077 or at info@rwroge.com.


R.W. Rogé & Company, Inc. is an independent, fee-only financial planning and investment management firm serving clients locally and virtually across the country, with Long Island, New York, Beverly, Massachusetts, and Naples, Florida office locations. R.W. Rogé & Company, Inc. was founded on a “client first” culture and proudly commits to acting in your best interest as a fiduciary. We help clients Plan, Achieve, and Live® the life they want since 1986. To learn more about how we do this, click here.

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