FB ACADEMY
experiences. It is in their late
20s/early 30s that they really start to need to earn an income, or receive a higher level of income, as they will want to buy their own house etc. The more serious conversations can take place then, when they have established their own journey in life. They will be mature enough to handle the added responsibility of inherited wealth.
SHOULD THIS BE DONE BY PARENTS OR SOMEONE WITH SPECIFIC SKILLS? SL: This conversation can be carried out by parents or professional advisers. Remember, children expect parents to parent and teachers, coaches and mentors to teach, coach, and mentor. Crossing over never works that well. The children should start to meet advisers in their 20s and understand the role they are playing.
WHAT TOPICS SHOULD YOU START WITH? HOW DO THESE CHANGE AS THE CHILDREN AGE? SL: The first thing they need to be
taught is that
they should walk their own journey or climb their own
Everest. Success means something different to everybody. It is not necessarily just about making money, although that does help oil the wheels. So go and be successful—help build a team of coaches, mentors, and supporters around them. I am a great fan of teaching
entrepreneurship. It is a fantastic skill to identify a problem or pain in the world and then find a solution and build a business from that. Life is, in many respects, all about problem- solving. However, not everybody is an entrepreneur and records show there are very few self-made second-generation billionaires. Then they need to learn how
to make money and manage that money. They need to learn to live within their own means. Careers are no longer linear and
hierarchical. It is about choosing a direction of travel and moving from stepping stone to stepping stone in a random order, learning skills and picking up experiences. Hopefully along the way they will become more successful as they travel in the direction of their passion. If they follow their interests and passion, then they are likely to be more successful and stick at it for longer. Wealth dissipates
very rapidly down the generations, so children must be aware that each
child is not going to be as wealthy as their parents and therefore might not be able to afford quite the luxury that they have grown up with, unless they can go out and generate it themselves.
ARE THERE ANY PITFALLS? SL: Do not shower your children with money. It is not helping and one of the first things I recommend is to switch off the allowance or reduce it. They must have consequences in their lives, much as the founder did. So if you do tell them early on about their wealth, make sure there are
Above:
Children learn entrepreneurship at a young age by doing odd jobs for pocket money
Opposite page: Responsible wealth management will become essential as capital transfers from baby boomers
consequences. There must be a reason for them to get out of bed in the morning. So many next-generation family members I come across have no hunger or desire
to change. ISSUE 75 | 2019
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