Talking to Kids About Their Inheritance
Many parents hesitate to talk to their kids about money. In most families, discussing wealth feels taboo. People rarely ask how much money others have — it’s often considered impolite. But avoiding the topic can leave your children unprepared. Even a modest inheritance can be mishandled or wasted without the right mindset and planning.
Baby boomers — the wealthiest generation in history — are expected to transfer over $68 trillion to their children in the coming decades. By 2030, millennials are projected to hold five times the wealth they do today.
Some parents worry that revealing their wealth will discourage their children from becoming productive, responsible adults. They want their kids to learn how to live like “normal” people — to work hard, build their own success, and stay grounded. To encourage this, many parents keep their financial situation private or downplay it altogether.
But wealth is relative. Even parents who aren’t extremely wealthy may avoid talking about money. Rising costs for retirement, health care, and long-term care create real uncertainty. Many parents fear they’ll need their savings later in life. If that happens, their children might receive little or no inheritance — and without a conversation ahead of time, that surprise could cause confusion or disappointment.
What Happens If You Don’t Talk About It
When parents avoid these conversations, they often leave their children unprepared to handle money — no matter how much is involved.
Some children struggle emotionally after receiving an inheritance. They may feel isolated from their peers or unsure how to handle new relationships. Others spend recklessly — on luxury items, expensive vacations, or short-term indulgences. These mistakes aren’t limited to large inheritances; even modest sums are often squandered when kids don’t know how to manage them.
Start the Conversation Early
Experts recommend talking to your adult children about money and wealth before they receive anything. That doesn’t mean handing over full access to your bank accounts or investment portfolios. Instead, focus on sharing your values, your goals, and what you hope your money will accomplish — for your family and for the world around you.
Help your children understand:
- How money creates opportunity and responsibility
- Why you give to certain causes or support specific people
- What financial habits you believe lead to long-term success
- How you hope the family wealth will serve future generations
One practical approach is to give children small amounts of money while they’re young — enough to practice saving, spending, investing, and giving. This hands-on experience builds confidence and teaches essential life skills.
Be the Example
The most powerful lessons about money come from what children see — not just what they hear. Show them how you live your values through the way you spend and give.
For example:
- Prioritize family time by investing in shared experiences, like vacations or a second home where everyone can gather.
- Involve your kids in choosing charities and let them donate their own money.
- Let them see how you save, invest, and make thoughtful financial decisions.
When you lead by example, your children are far more likely to carry those values forward.
Ready to Begin? We’re Here to Help.
Talking to your children about inheritance is just the first step. We can help you:
- Structure your estate plan in a way that supports your goals
- Prepare for future health care and long-term care needs
- Choose the right people to help manage things if you’re unable to
Let’s talk about your family’s future.
