This is a question that many affluent families face, and they often enlist the help of their financial advisor and a family wealth consultant to help them figure it out. But even if you are not a multimillionaire and only considering leaving your kids a modest inheritance or a family home, the essence of the question is the same: How does leaving money and assets after your death impact the next generation? The answer is, It depends.
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Based on my work as a wealth psychology expert and my experience helping couples talk more openly about money, I've discovered there are three things you should consider when deciding what makes the most sense for your family:
1. The value of hard work can't be denied. Teaching children the value of hard work and how they can contribute to society is an important lesson. For those families that have financial resources, it can become trickier to encourage the kids to work and contribute to the household.
It is worth noting that when I ask my graduate-level students at Bentley University what they learned from their first jobs, the answers always include the value of a dollar, the impact of taxes on income, and how many hours you really have to work to make enough money to pay your bills.