4. Show leadership Families want leadership to come from within. Seventy-seven percent of respondents said the wealth creator should be the initiator of conversations about wealth. Families can outsource management to trusted professionals and advisors, but not the actual leadership role. Ask yourself: What leadership role can I play in my family?
5. Build empowerment Reframing the belief that talking about money is not gauche but rather a way to empower rising generations is a big shift away from negativity. For instance, the top areas where respondents felt their choices could "make a difference" were in education-based giving (56%) and philanthropy (55%), or in other words, a focus not on what wealth can buy, but on how it can make an impact. Ask yourself: How can our family collaborate to make a positive impact on our family and/or the community?
Reframing prenups and allowances
Sixty-six percent of respondents considered prenuptial agreements a starting point for communication about wealth.
However, when prenups drive the conversation, people first think of communication from the worst case scenario, rather than starting with their shared financial values and goals.
Ideally, the prenup conversation should become an extension of their overall approach to money, and the culmination of wealth discussions, not the starting point.
The same could be said for allowances, which are often used as incentives, rather than tools. The research revealed that 36% of respondents felt that the purpose of an allowance is to pay for chores, yet parenting experts say that linking duties to money is not an effective approach.3 Rather, by instilling a sense of financial responsibility and empowerment parents can teach their children as early as possible that money is not an end in itself, but a means to pursuing their passions and purposes. The principles of save, spend, share and invest would be intrinsic to their financial upbringing.