September 23, 2014 Fact of the Day: 25 Million Plus Investors Worry Most About Children and Teaching Work Ethic
Did you know that households with more than $25 Million of net worth are not worried about their own financial situation, but they are worried about their children and grandchildren. They want to make sure their children and grandchildren are able to develop the appropriate work ethic.
About 83 percent of the wealthiest Americans want to make sure that their children are educated about money and that they are able to learn appropriate work ethics.
Constantly we hear about wealthy individuals who don't want to just give their children a lot of money....from Warren Buffett to Bill Gates....each of these individuals is trying to teach their children how to work hard and how to give back?
Why is this? First...most of these individuals made their wealth due to their own hard work. HIstorically we have seen that the "work ethic" might disappear along with the wealth if this important value is not passed down. There are interesting books written about this phenomena.
How can these values be passed down to younger generations?
It's hard to build a road map, buy many of the most successful families have done so by living their lives in a fashion similar to the ones in which they grew up. Yes, the children can go work for the family business...but make them really work and earn the respect of their peers before blessing them with big titles.
Another important value is learning the value of saving. Not all wealthy families emulate the Kardashian lifestyle. When we review the expenditures of these households, we do not see huge allocations to clothing or to yachts. The biggest expenditures are often vacations...and charitable contributions. Family vacations are great ways to appreciate one's wealth....as well as getting the family involved in the charities that one has a passion about.
Just like the rest of us....wealthy families want to teach important values to their children. If you want to strategize on how to teach your children financial values, check out our Best Advisors.