March 23, 2015 Fact of the Day: Why Do Wealthy Households Disclose Finances to Children?
DID YOU KNOW THAT.....one of the primary reasons that wealthy individuals share information about their income and net worth with their children is to help them learn the implication of various decisions...such as paying for college, etc.
When asked the primary reason for sharing information with their children regarding their income or net worth, 56 percent of wealthy households indicated it was to teach them the value of money. Forty five percent said it was to teach their children how to save.
But the most common reason.....62 percent share this information with their children in case something happens to the parent...or in case of an emergency.
Another 26 percent have shared information with their children because of estate planning purposes. This number increases to 49 percent for those with more than $5 million.
If you have questions about sharing information with your children....check out one of our Best Advisors.