The way we manage our finances differs because everyone has unique needs and requirements, as well as there being a vast range of individual and family resources. For high-wealth families it can be a particular challenge to maintain their standard of living, while also making sure that capital growth continues in order to guarantee a secure future for the next generation. There are several areas that need to be addressed, and each of these need to be properly managed to ensure a positive outcome.
Attitudes to money
For wealth creators it can be a challenge to ensure that their offspring grow up with a healthy attitude to money. Every parent, no matter their status, wants to provide the best environment for their children to grow up in, but this can present difficulties for those with money as much as it can for those without. A knowledge that somewhere further down the line a large inheritance will come their way can make a child grow up with a lack of desire or ambition of their own. Teaching them money management not only helps avoid Oscar Wilde?s adage about knowing the price of everything and the value of nothing, it can also help prevent the unscrupulous from taking advantage of their wealth in later in life.
Success or failure
Wealth being passed from generation to generation is not a certainty, and some might say it is the exception rather than the rule. Although there are many world-famous dynasties that have successfully transferred wealth across generations, onl...