It’s every parent’s hope that their children will grow up to have more than they did, and that their children will never worry about money. Unfortunately, many parents not only struggle to pass down wealth to their children that they can then grow and continue to pass along, but they also struggle to teach their children how to gain and manage wealth, should they come into it either through work, inheritance, or both.
Parenting for financial wealth is a two-part process. It’s not just about making sure your children will have money, but also making sure they know how to handle money. Without the latter, the former often doesn’t last long. In America, Black families historically have a substantially lower median wealth than white families, and many who manage to build significant wealth still don’t have the safety nets in place to keep it – making them vulnerable to losing it all over one unfortunate incident, as detailed in one woman’s saddening story. Though many changes need to be made, including on governmental and societal levels, in order for future generations of the Black community to build and hold onto wealth, parenting the current generation for better money management is one thing families can do now. We spoke to Dr. Nicole Garner Scott, financial expert, speaker, and coach of AmountFinancial.com, about how to parent for financial success.
Pass down knowledge
“Even if you can’t pass down a financial inheritance, you can pass down an intellectual inheritance. You can strengthen the next generation by making sure they’re aware of finances,” says Dr. Scott, adding “Having that understanding of financial education is just as important as the finances themselves.”