A generational disconnect in wealthy families has been revealed, with a lack of discussion on money between parents and children apparent in the results of a survey of over 1,000 children of millionaires.
The survey of HNWIs’ children aged between 16 and 26 was conducted by the US bank Wells Fargo.
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According to the study, more than 90% of wealthy families do not meet regularly to discuss finances, with just one in three saying they have had a formal meeting with their families to do so. Among those not meeting, around 60% say that such meetings would be valuable.
Katherine Dean, head of family dynamics for Wells Fargo Private Bank said, “This is such important data. These are the generations responsible for carrying on the family legacy, so it makes a big difference when families collaborate and communicate their shared values.”
Sixty per cent feel family pressure to live up to the level of wealth and success set by their parents, while 44% say they have a different focus on money to their parents.
“Communication is the foundation of any successful family,” said Dean. “It is so vital to talk to your children about money, and not just once but regularly.”
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By GlobalDataAccording to the report, children are generally confident about their ability to manage their family’s wealth, ranking themselves a grade B for budgeting, saving, and managing credit and debt, but less so on matters such as insurance, taxes and investments, in which they gave themselves a C. Confidence invariably improves with age, and sons are generally more confident than daughters.
The report also revealed that children are generally less focussed on the importance of education and hard work, 18% and 13% less respectively, and more focussed on more personal matters such as family, enjoying life, and philanthropy.
More than 90% of those surveyed say the most important thing they will inherit from their parents is their values and not their wealth.
