Adventures in Stewardship: Crafting the Next Generation

January 3, 2019

Three techniques for passing down values and instilling a sense of responsibility

As most studies reveal, the financial habits of those who amass wealth through years of hard work and responsible risk taking are often vastly different than those who inherit a large sum of money. However, it doesn’t have to be that way. By taking a few steps throughout your children’s lives, you can help instill positive habits and a sense of stewardship that will propel your hard-won family legacy through the next generation and beyond.

Talk the Talk

Speaking with your children about your family’s history is important. Sharing stories of your ancestors’ accomplishments, as well as their failures, will paint a picture of how your family arrived where they are. Appreciation of the sacrifices, struggles, and successes that are a part of your legacy starts with knowing the story. Discuss what the family story means to you and how it has shaped your values. Point out ways you have incorporated these values into your life, particularly your work ethic, your charitable activities, and your responsible spending habits. Ask your children for their feedback on what the story means to them. Discuss ways you’ve already noticed them incorporating the family values into their lives. It could be helpful to outline ways that, in the coming year, they could continue to reinforce these values through additional positive activities and building good habits.

Walk the Walk

If your children are still under your roof or live in your area, it can be very powerful to team up for activities that reinforce your family values. Not only are these fantastic bonding opportunities, they can really shape a young mind. Chances to interact with people whose life circumstances are vastly different than their own can reinforce values of compassion, charity, and appreciation for one’s own situation. Working at the family business might reinforce work ethic and teach the next generation how much sweat is necessary to build something meaningful. If you’re involved in gifting, bring your children into the fold by explaining what organizations you help and why they’re important to you.

Meet the People

If your children aren’t familiar with the organization to which your family donates, it could be very effective to make a visit. That way, your child can hear first-hand how the donations are used and how people are positively affected by your family’s generosity. Putting a face on a seemingly nebulous activity like gifting can really make an impact. If your family has employees, make sure your children get to know them. It will show them how many people depend on your family’s business for their livelihoods and encourage appreciation for the gravity of that responsibility. When you feel it is appropriate, pulling back the curtain on the family’s finances can also be helpful. It is a final piece in the puzzle of the family legacy. Understanding the entire picture of how hard work, responsible decisions, and positive financial stewardship fit together will likely reinforce a sense of appreciation and duty.

As always, your Hummer Mower Associates team is here to help you with the complex issues that accompany intergenerational wealth transfer. As we prepare to celebrate our company’s anniversary, we look back at the past generations’ achievements and reflect on how we can best continue that legacy today. We consider it a privilege to partner with your family as you do the same, and can’t wait to meet your future stewards.