PHOTO: CHRISTIAN LANTRY/GETTY IMAGES
Treat Your Children Well But Limit Their Inheritance
Money and youth can be an unhealthy combination, even if it doesn’t propel you and your heiress pals onto a reality show. In fact, popular wisdom now suggests that getting handed a fat check for simply being part of the right family doesn’t do much for anyone. With a $41 trillion wealth transfer predicted as baby boomers near retirement, more parents are scaling back massive family bequests, channeling money to social causes instead.
The fledgling movement stems, in part, from spreading symptoms of affluenza. Rich kids have more problems with substance abuse, anxiety, and depression, according to a Columbia University study. More important, many parents increasingly admire the model of Berkshire Hathaway’s Warren Buffett or Bill Gates of Microsoft in putting their money to more noble uses. As the rich have become richer, the plight of the disadvantaged has become more evident. Instead of giving a potential complex to a handful of offspring, these parents want to use their wealth--even if it’s relatively modest--to help change the world.