Generational wealth is an aspect of financial planning that is geared toward passing down stable, significant financial resources to future generations. But can anyone really teach wealth? If all it took was knowledge to become wealthy, then most business people, professors, financial planners and others would be very wealthy. The reason they’re not is because becoming wealthy requires a lot more than knowledge. It requires hard work, discipline, sacrifice and many other traits that are very hard to teach and pass on.
It is estimated that 70% of wealthy families will lose their wealth by the second generation and 90% will lose it by the third. There are a variety of reasons why this happens:
Generations are taught not to talk about money
The prior generations worry that the next generation will become lazy and entitled
Many have no clue about the value of money or how to handle it