How to Train Kids To Earn Money And Build Wealth. It is a Key Skill for Life.

The best way to Train Kids To Earn Money And Build Wealth. It is a vital Skill for Life.
Getting loaded is hard enough. But educating the next generation to be wealthy is catchy, too.

More individuals are confronting that issue as the booming stock market, an improving economy and the success of young businesses like Twitter TWTR 0.49% and Facebook FB 3.03% swell the ranks of the well-off.

Congress also opted to keep the federal estate-tax exemption at $5 million, adjusted for inflation, keeping a fortune in the hands of affluent families that might have gone to Uncle Sam. The exemption had been set to fall dramatically.

Yet the challenges are climbing at exactly the same time as the positions, according to parents and wealth advisors. Conventional hurdles--such as helping kids reared in ease acquire a strong work ethic--are compounded by 21st century ones, including maintaining a safe presence on social media. How to Train Children to make money And Build Wealth. It is a vital Skill for Life.

Many well-off parents worry their children's lives, instead of being eased by cash, will be made more complex or less productive and that fortunes will be squandered. Some 57% of the respondents to a 2013 survey by U.S. Trust, Bank of America's private-bank unit, didn't believe their kids would be ready to handle being loaded until they were 25 to 34 years old. In a similar survey the previous year, 51% had the same perspective.

The good news is there are strategies that can smooth the transition and lower its dangers, specialists say. They recommend starting well before children are grown, to talk about the cash of the family early, as the time nears when youngsters will receive any inheritance and then building on those early conversations.

Amy Renkert-Thomas's maternal grandfather founded the Fisher Price Toy company during the Great Depression and sold it in 1969 to Quaker Oats for at least $300 million in the current dollars. Her dad's family started a local brick-and-tile manufacturer in 1866 and which generates about $10 million to $20 million in yearly sales.

The best way to Train Kids to make money And Build Wealth. The family's mother had gotten a similar account when she came of age and needed to continue the practice.

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Becoming rich is challenging enough. But educating the next generation how to be affluent is catchy, also. Getty Images
She works as an adviser to other well-off families that own companies at Withers Consulting Group in New Haven, Conn.

"It's quite freeing, quite energizing, to think that that wealth is there to be put to great use," she says.

Here are measures that experts say affluent families should take to help raise children who are both wise and rich:

Tell the Rags-to-Riches Story
Few families have known nothing but privilege for generation after generation. Perhaps it's the great grandparents, or the parents, or the grandparents, but someone on the family tree only got affluent after experiencing early failure, challenge and, likely.

Families need to tell the narrative of where the cash came from, says Neale Godfrey, chairwoman of the Children's Financial Network, a financial-education business based in Chester Township, N.J.

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"Kids are so insulated from how it got created in the first place," she says. By the time the youngest generation arrives, the houses are commonly already large, the beach house is well lived-in and the club memberships have been long secured.

One method to get kids involved is to demonstrate them where it all started--the first factory opened by the business, for instance. Ms. Renkert-Thomas says her father used to point out structures assembled with the family's brick products as they traveled around town during her childhood. How to Train Kids To Earn Money And Build Wealth. It's a Key Skill for Life.

Advisors say, in telling the family's narrative, be sure to include mention of the mistakes and failures along the way. It's hard for children to grow up in a house where they think their parents are superheroes.

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Posted by staciahollingsworth on Tue, 07/22/2014 - 1:01am