Most children of the affluent classes will not be forced to work at a traditional job. They may spend much of their lives simply being wealthy. While this may not seem difficult, and most of us would gladly trade places, it turns out that hanging onto the wealth is extraordinarily challenging. Very few families – even those with extreme wealth – succeed for very long. If wealth is going to be sustained and not wasted over one or two generations, then each generation must become truly competent at being wealthy.
The skills required to do this are not taught at any university or college. While there are many courses directed at helping children of the successful understand the technical aspects of investments, taxes, legal structures and the like, relying on these courses alone is a recipe for disaster. Educational approaches simply do not equip children for the “job description” facing them as they mature into adulthood and even with the best technical training, wealth disappears. As it turns out, the job of being wealthy requires the development of human skill and the creation of a family culture that supports honing these skill sets.
These capacities have little to do with the technical aspects of money management and everything to do with such things as values, accountability, depth of character, good judgment, and emotional intelligence. For most of us, these intangible skill sets are learned in the grit of everyday living where wealth does not insulate us from having to develop the capabilities we need to make our way in the world. Where do those with inherited wealth gain similar skills necessary to do their jobs well? They certainly can learn some of this from their families — provided the family is creating the right conditions to foster their development. If children are going to succeed at being wealthy, it is critical that the family leaders design approaches that foster the skills the family will need to be successful in the long run There is a growing body of work that identifies the principles underlying successful approaches to building sustainable wealth. Families that understand and can adopt these principles are much more likely to create successful heirs.
Questions:
- Do you know families where they view the management of wealth as a job?
- What do you see families doing to equip their children for the job of being rich?