Comments on: An Instruction Manual for Generational Wealth

By: One Frugal Girl

One Frugal Girl — Mon, 15 Feb 2021 19:06:32 +0000

In reply to Chris. Hi Chris, Thank you for your comment. I considered the big expenses, but I hadn't thought about gifting small amounts of money over time. You've given me new ideas to consider.

By: One Frugal Girl

One Frugal Girl — Mon, 15 Feb 2021 19:04:33 +0000

In reply to Javi. Thank you for your comment and congratulations on your pregnancy! I'm glad you found this helpful.

By: One Frugal Girl

One Frugal Girl — Mon, 15 Feb 2021 19:03:40 +0000

In reply to Steveark. I hope my husband and I live a long healthy life so that my kids are also much older when they receive our inheritance. I do plan to help them out financially before we die though. For instance, paying for their college education if they don't qualify for scholarships.

By: Chris

Chris — Mon, 15 Feb 2021 13:09:05 +0000

Thanks for this article. I had not really thought about generational wealth being some of the small, mundane things we have done for our kids and my folks had done for us. Things like helping to pay for a first car, a few thousand dollars to pay closing costs for a first home, etc. Of course, college is neither small, nor mundane, but we felt it was so important they got an education that we made major investments in their undergraduate degrees. Now that they are both on their own, we feel the best thing we can do for them is to be self-sufficient as we age, so we are not a financial burden to them. We are hopeful that as we age, we may be in the position to gift small annual sums to them, as my spouse’s parents have done once they turned 80. A few thousand dollars can make a huge difference if it is given at the right time, and the recipient uses it for something that improves their situation, like mortgage payoff.

By: Javi

Javi — Mon, 15 Feb 2021 09:05:14 +0000

Thank you for this article. Currently, my wife is pregnant and we often discuss about the best way to manage money issues and parenting. I was really inspired by your instruction manual to the next generation as it touches all the important little keys in order to raise our kid on purpose.

By: Steveark

Steveark — Mon, 15 Feb 2021 03:18:16 +0000

My parents left me and my brother a million each. But we were already self made millionaires when we got it so it hardly moved the needle. I’ll leave each of my three kids much more than that, but I doubt it will be life changing. Inheritances happen when you are pushing 60, that’s simple math, it’s set in stone, and a million or three at 60 can’t change your life. It’s too late. I just don’t think inheritances are ever life changing. And that’s a good thing.

By: One Frugal Girl

One Frugal Girl — Sun, 14 Feb 2021 21:24:38 +0000

In reply to Mistress of Home and Finance. That's a great way to transfer wealth if your kids are interested in this type of management. Thank you for the comment.

By: One Frugal Girl

One Frugal Girl — Sun, 14 Feb 2021 21:22:00 +0000

In reply to Tim Griesdorn. Thank you for this comment. These are excellent ideas.

By: Mistress of Home and Finance

Mistress of Home and Finance — Sun, 14 Feb 2021 17:22:47 +0000

One of the practical things about generational wealth I saw my mother put into practise is to avoid a windfall of cash that falls on us kids.
Some people, like my sibling, will let cash trickle out of their fingers like grains of sand cast to the wind.
Instead my mom gave us a workload in the form of real estate which we had to learn to manage.
Ensuring your kids need to work for their gift is important — that quote about “doing anything, but not nothing” is one my mom espoused.
Thanks for this post!

By: Tim Griesdorn

Tim Griesdorn — Sun, 14 Feb 2021 16:47:40 +0000

Thanks for this article. I know many families struggle with this issue. It is so sad to see the intergenerational wealth disappear after three generations. One thing that could have been mentioned is the concept of a family bank. It allows your children options for starting new businesses or getting a house or education and repaying that amount back so future generations have the money to do the same. I also like the idea of dynasty trusts for the education or service experience like missions.

A great book and movie about this is the Ultimate Gift.