"Warren Buffett recommends wealthy parents "leave their children enough so they can do anything but not enough that they can do nothing." Helping parents find that sweet spot is central to Kathleen Grace's job as the CEO of Fiduciary Family Office, which manages about $800 million of total assets for around 60 families. "Most families come in and say to me: 'How much should I give my kids? How much is too much in order to not ruin them?'" Grace told Business Insider."
"She said that most of her clients - who have $25 to $30 million in liquid assets on average - are self-made, which makes it especially tricky as they want to "help and support their children, but not in a way that takes away their motivation or their desire." Staving off entitlement and keeping their children grounded is no simple feat."
Wealthy parents often worry that children will become lazy, entitled, and waste the family fortune. Parents should teach financial habits early so children learn the difference between needs and wants, delay gratification, and decide if purchases increase happiness. Children should receive allowances and age-appropriate education about saving, spending, investing, and giving, with guidance tailored to personality. Parents should encourage work and responsibilities, limit excessive perks, and promote philanthropy to build perspective. Finding the balance means providing enough to enable opportunity but not so much that motivation and drive disappear.
Read at Business Insider
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