3 Ways To Build Generational Wealth
When it comes to leaving our children an inheritance, these 3 ways to build generational wealth if followed can build a legacy that will last for generations to come. Generational wealth refers to assets passed from one generation to the next. Those assets can include real estate, businesses, and stocks. It is usually wealth that is passed on after death in the form of inheritance. The best way to begin building generational wealth is by investing in the future – our children.
Teach Children Personal Finance
Statistics show that students who learn to manage their finances early in life often become adults who will be better equipped to live independently. Instilling a habit of saving is a crucial first step. Saving not only teaches discipline but it promotes delayed gratification and teaches goal-setting and planning. The practice of saving creates of mindset of preparedness building security and independence. Educating children on financial literacy helps continue the legacy of generational wealth. The education itself becomes the gift that keeps on giving into the future generations.
Invest in Education
Investing in education ensures more options when it comes to job opportunities. Education opens up a whole new world that will help them realize there are endless opportunities for them to engage in. Saving for college not only provides a head start for your child but it also sends a positive message that education is indeed important. Whether they choose college or trade school, funding helps your child with any path they decide. A key factor in building generational wealth is being able to provide opportunities for future generations to follow their passions. Which could lead to the start of more wealth-building avenues.
Start a Business
Creating a successful business is a great way to pass down generational wealth. The profitable family business can lead to financial stability for future generations. Many valuable lessons come from involving your child in the business as it grows, instilling a strong work ethic. Though there is a possibility your child may not have any interest in the business, it still has the potential to teach them about acquiring wealth.
One of the greatest gifts we can pass along to our children and their children lies in the practices that begin with these 3 ways to build generational wealth. At North Bethesda CPA, it is my pleasure to help you build a strong financial plan. Feel free to contact me and connect with me on Facebook and Instagram.
