Rich Individuals Can Harm Their Children By Giving Them Cash
You would not think this is logical. How could you hurt your kids by giving them money? Over the long term if you continually give your children the most tax free cash gift (currently $13,000 per year) and they come to expect it, you are only enabling their shopper lifestyle and are not really teaching them to be self sufficient.
Obviously there are exceptions. If your children already do perfectly well on their own and your gift is simply a bonus they do not need, then the danger of hurting their success is greatly diminished. But if your gift is enabling them to measure a lifestyle they cannot afford then they’re now obsessed with you. What does this do? It practically ensures that they will not be ready to support themselves when you’re gone or when the money runs out. Their focus shifts away from your loving relationship and a lot of toward protecting their inheritance. Family squabbles are frequent in cases like these.
If you would like to help your children succeed without enabling them, provide them an education. Help cowl their advanced degrees. If you’ll be able to give them the tools to raised themselves its far more valuable than giving them a house.
I shall be wealthy someday. I’ve got 2 youngsters I want to help. But I have to watch out to try and do it during a way that does not cripple their ability to manage their own lives and so pass bad habits onto my future grandchildren. Information, self reliance, independence, free thinking; these are all traits I want my children to have. I can help with their educations. I can facilitate in emergencies solely, but not on an everyday basis. Debts they get are their own. I am not an ATM for their convenience.
If you have got achieved financial independence then helping your family could be a natural goal. Just be careful to look to the long term potential of what you are giving them. It might be doing additional damage than good.
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