We sit on the edge of summer; it’s about to arrive. The school days will be out, and the kids will be clamoring for weekday attention, ice cream, hot dogs, water balloons fights, and, hopefully, lots of fun at camp. Most parents feel that summer is when they can help teach their kids a few things outside the classroom, including helping them find a summer job. A summertime job is one of these pastimes, passed down from generation to generation, an opportunity to learn how working/saving/spending are all connected.
Recently, I’ve had some nostalgic flashbacks of summer vacations and my first summer jobs. Most of us can remember taking on lawn care or cleaning out the attic to earn a few extra bucks wherever possible. My parents were just as good at delivering the famous line as any others were, “If you want (insert the desired possession) so bad, get a job and buy it yourself” What I’m trying to do with my kids this summer is help them start building good habits. I want my kids to know that it’s not always about fulfilling that feeling of want and desire at the moment; something better may be around the corner.
Building Generational Wealth – Nurturing the Good Habits
Now, don’t think of me as the Grinch Who Stole Christmas and put it into a mutual fund. My kids are still allowed gifts and physical possessions if they desire them, and it’s an appropriate occasion. Still, they’re not too young to start learning about investment opportunities, saving, and how quickly a dollar can disappear if it’s not well taken care of. My wife and I let the kids earn stars (worth $1 each) for good behavior, tasks completed, etc., which they can use to purchase things off their wishlist.
I’ve mentioned this before, but I’m always asking relatives and family members to gift stocks for the kids or a fun, shared experience over any plastic, soon-to-be-forgotten toy. Again, I don’t get a rush out of denying my kids fun; I’m trying to help provide some perspective that the most rewarding gifts in life are those earned and, quite often, shared.
The Good, the Bad, and the Ugly
From a very young age, we can develop good or bad habits. As a multigenerational family financial planner, I see the habits, good and bad, passed down all the time. For example, I start working with a couple at retirement age, and they want to recommend my services to their children. I’ll usually see the same saving/investment strategies passed along in that case; this can be a good and bad trend simply because the old-bad habits tend to die hard and require intervention and education to unlearn. But, when building generational wealth, it’s never too late to escape the bad habits and practice good ones.
Building Generational Wealth – Anyone Can Do It
A certain connotation comes to some people’s minds when they hear the term “generational wealth,” and it’s not a positive association. There’s a falsehood that generational wealth is only experienced by the wealthy elite, a “ the haves versus have nots” type of situation; the belief that if you weren’t born a Rockefeller, Kennedy, or Kraft, generational wealth would always allude you and yours; this is remarkably untrue, and a somewhat defeatist attitude that I combat every chance I get.
Just as with any worthwhile venture, building generational is a step-by-step process, and while there’s some tabloid-generating nepotism, most families don’t have that type of luxury. As I started this piece by referencing summer jobs and teaching kids good habits, I want to reiterate that building strong financial foundations starts small, and brick by brick, the good, learned habits all contribute to something more substantial.
It’s Never Too Late to Start Building Great Habits
If you’re trying to better understand your family’s generational wealth&wellbeing, I would be delighted to help unpack the situation. Family financial planning for generations is no simple task, but much of my career has been focused on helping families keep good habits, have a clear perspective, and ensure that clear understanding and communication are kept between all members of a multigenerational family unit.
