August 24, 2019

What the 1 percent are teaching their children about money

What the 1 percent are teaching their children about money

Keystone-France | Gamma-Keystone | Getty Images

John D Rockefeller Jr. and his five sons David, Nelson, Winthrop, Lawrence S. And John D. III

You may think ultrahigh net worth individuals have nothing to worry about when it comes to money.

The experts who help them manage it would be the first to tell you you’re wrong.

Those with ultrahigh net worth are defined as households with at least $5 million excluding their primary residence, according to Spectrem Group, a wealth management research organization.

Making sure those millions last can be a challenge for super wealthy families, many of whom have had their financial success created by one generation and do not want to see it lost by their successors.

The saying “from shirtsleeves to shirtsleeves in three generations,” or the concept that a family’s wealth could eventually dwindle, regularly comes up in conversation with ultrahigh net worth individuals, said Carol M. Schleif, deputy chief investment officer at Abbot Downing, a business unit within Wells Fargo that focuses on families with $100 million or more in total net worth.

To combat those fears, many of those families are teaching their younger generations how to treat money so it lasts.

And those same values can help all families learn to become wealthier.

This chart shows the number of ultrahigh net worth individuals in the U.S., excluding their primary residence.

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