The Responsibility of Wealth
Even if work is optional in your family situation, a healthy work ethic is a crucial skill directly impacting one’s relationship with money. Consider the value of a dollar earned vs a dollar gifted or found. Psychologically, the value we assign to wealth directly correlates to the effort involved in obtaining it; when wealth is earned, people tend to think more critically before using it. Creating a relationship with money based on a work-reward model also provides time to learn how to manage wealth effectively, developing healthy habits such as budgeting, saving, and investing along the way.
For younger children or grandchildren, instilling this life lesson can be as simple as hiring them to mow the lawn or giving an allowance based on chores. For those in adulthood, consider offering a position in the family business or establishing a trust or foundation to fund a business venture. Rather than simply handing over lump sums, you can use your wealth as a teaching opportunity, equipping them for a healthy relationship with work and money long after you’re gone.
Thankfulness Begins with Humility
A top concern among many families navigating generational wealth is protecting their children from a sense of entitlement. How do we cultivate gratitude? As Henry Ward Beecher noted, “A humble mind is the soil out of which thanks naturally grow.” Stay tuned to learn more about the neuroscience of gratitude in our blog next month.
As you have conversations with younger generations who didn’t witness the sacrifices and discipline required to build your family wealth, consider sharing stories about the humble beginnings, risks taken, and values that guided your journey. Whether it’s a business built from scratch, late nights in school, or faithful stewardship through lean years, these stories (including your failures) remind heirs that generational wealth is the result of diligence, not entitlement.
Do Unto Others
Generosity is not just a powerful antidote to entitlement, but also a habit that provides deeper personal fulfillment and purpose. By creating room for family members to actively engage in giving back, you can help them cultivate compassionate hearts while laying the groundwork for a more rewarding relationship with wealth.
Consider hosting family meetings where children and grandchildren get to help decide which causes or ministries to support, or invite them to join you at fundraising dinners and other charity events. You may also consider pairing financial generosity with acts of service, emphasizing the belief that time, just as much as wealth, is a resource meant to be shared.
To Whom Much Is Given
Perhaps the most powerful way to pass down values is by modeling them. Children and grandchildren notice how you make decisions, spend money, and treat others. Demonstrating wise, values-based financial stewardship can leave a lasting legacy for generations to come.
Invite your heirs to join you in faith practices and financial disciplines, and consider including them in meetings with your wealth management team. Be transparent about why you support a certain mission, explain your budget priorities, share moments of gratitude, and offer to help beneficiaries set up savings and investment accounts. Modeling these financial habits creates a living blueprint for managing wealth wisely.
Leaving A Priceless Legacy
In a culture that glorifies wealth as a goal, rather than a tool, it is a challenge to leave a legacy defined by values, not just valuables. However, navigating these challenges doesn’t have to be done alone. Many affluent families find value in working with us because we understand the tax and technical complexities of wealth as well as the emotional and spiritual values that guide it.
At HFG Wealth Management, we help you pair wealth strategies with faith, generosity, and wise stewardship to bless generations. We accomplish this by aligning financial decisions with your core values , creating systems that protect assets, and fostering family conversations about what matters most. By coordinating with estate attorneys, CPAs, and family governance experts, we help clients build strategies that serve both financial and spiritual goals. To learn more, download our 5 Pillars of Strategic Wealth Transfers [LINK TO DOWNLOADABLE], or schedule a conversation with us to explore how your financial plan can empower future generations for a purpose-driven legacy.
