16 October 2015
South Africans who find themselves in a very healthy financial position are likely to be just as eager to instill healthy financial attitudes and ambition in their children to avoid them becoming spoilt.
Jamey Lipschitz, wealth manager at Sanlam Private Wealth says there is an old saying: ‘the first generation makes the money, the second enjoys it, and the third squanders it’. “When it comes to their children and their wealth, we often guide our clients to look beyond material assets and to consider what values they would like to instil in their children as a part of their legacy.”
Lipschitz offers the following tips to parents to help their offspring cultivate a healthy financial attitude:
“There is no golden rule for ensuring your wealth does not ‘spoil’ your children’s future. Each family situation is different, and children will need different levels of guidance. But you cannot just give your children the best money can buy without also teaching the values which will form the basis for life-long habits to ensure not only their own financial security, but that of generations to come,” Lipschitz concludes.