Is Leaving Your Kids a Fortune a Good Thing?
Why do you want to build up a good level of savings? If you asked a number of people this question I guess that a few of them would say that they want to set their children up for life. After all, isn’t that the most logical answer to the question?
This sounds like a worthy ideal but is it a good thing to do? Simon Cowell is one celebrity who has stated that he intends to leave his fortune to a charity instead of giving it to his children, as he doesn’t believe on passing on huge sums of money from one generation to another. Warren Buffett, Bill Gates and Jackie Chan are other wealthy people who don’t intend to leave a fortune for their offspring. So is this a good thing or not?
Make Them Stand on Their Own Two Feet
Perhaps the most important point of all is that giving your kids a big sum of money makes life really easy for them right away. If they grow up knowing that they are going to inherit a lot of cash then they might not have the same desire to stand on their own two feet and find their own way in life. On the other hand, if they need to earn their way in life then this is a great way for them to step out from their parent’s shadow and be their own person. It isn’t often that I quote Jackie Chan but the martial arts star got it bang on when he said of his son, “If he is capable, he can make his own money. If he is not, then he will just be wasting my money”. Well said Jackie.
Let Them Appreciate the Value of Money
My parents fed and clothed me for a good number of years, as well as giving me a place to stay and sending me through school for longer than I would have cared to have gone. However, they never spoiled me by giving me big sums of money or making it clear that I could buy anything I wanted. This is a large part of the reason that I now appreciate the value of money. Giving a youngster a lot of cash to play around with is a recipe for disaster in many cases. I’m sure that you can think of a number of cases of rich kids who have been in the news in recent years for running into problems. People have even started talking about affluenza as being a type of condition which makes it difficult for spoiled rich kids to know the difference between right and wrong. We all need to appreciate the value of money at some point and the younger the better.
Let Them Grow and Gain Confidence
I can only imagine what it feels like to be left a fortune by your parents and it is something I would never want to find out. I expect that rich kids who inherit a lot of money tend to suffer from low self esteem because they know that they haven’t earned a penny in their lives. I would much rather imagine my daughter finding her way in life and feeling good about making her own money. I’m sure that she would feel a lot better about herself in this type of situation. In case she ever reads this I should point out that I don’t have a fortune to leave her anyway.
Would you leave a fortune for your children, spend it, give it away to charity or do something else with it?