A round-up of thought-provoking ideas or research I’ve come across while reading newspapers and magazines.
Wall Street Journal – the Journal Report – Wealth Management
How do you keep heirs from losing their work ethic?
Eleanor Blayney, consumer advocate of the Certified Financial Planner Board of Standards
I once ran a workshop for wealthy parents on how to raise financially responsible children. One mother shared her unique approach. She told about the time her preteen son came to her and asked, “Mommy, are we rich?” To which she replied, “Your father and I are. But you are not.” I now believe this is the conversation that all wealthy parents need to have with their kids.
I love that! I am rich, but you kiddo are not! In other words, you gotta work for it. You’re not born into it!
The University of Chicago Magazine, Jan-Feb 2013
Research by Chicago Booth behavioral scientist Nicholas Epley and Yan Zhang MBA ’09, PhD ’09 found that people would rather receive gifts that they requested, over gifts that were unrequested but thoughtful. By the way, if you didn’t know it already, the science of gift giving is extremely uneconomical.
Top 10 Cities for Tech based on venture capital investment
Source: The Money Tree Report by Pricewaterhouse Coopers and the National Venture Capital Association, based on data from Thomson Reuters
1. SF
2. San Jose, CA
3. Boston
4. NYC
5. Oakland, CA
6. San Diego
7. LA area
8. Orange County, CA
9. Chicago
10. Austin Area, TX
Oh I love that too and really kids do need to work for it and not be handed money, because otherwise they will not learn the value of a dollar. And didn’t know the top venture capital cities and glad to see NYC is indeed in the running.
Janine, I LOVE NYC. My biggest regret in life? Never living in NYC.
I love that! By giving our kids everything, they come of age thinking everything is going to be handed to them. Our kids need to learn the value of the dollar as well as a strong work ethic!
I like to think I am a total disciplinarian even though I don’t have any kids yet. Steeped in an immigrant culture, I am very thoughtful about how I want to raise my kid so they’re taught similar values.
My dad used to say something similar…not that we were rich, mind you, but he managed the money well and would explain to us that he could do things for us simply based on that fact…and he advised that we did the same when we were adults!-Ashley
Yes, Ashley, that is exactly the sentiment that needs to be conveyed. Work hard, be financially self-sufficient.
Very intriguing sentiment here! I don’t know that I would ever be posed with such a question, but it’s a nice way to look at how you could interact with your child on the “wealth” subject. I’m visiting you from the SITSgirls Sharefest! Nice to meet u!
Hi Andrea, so glad you stopped by. Hope you had a fantastic weekend. I love SITS!
I think it’s great to let parents know that what their children are seeing is not the whole picture. Their seeing the fruits of their parents work, but they often are not there for the building time. It can be too easy for kids to feel as if they are entitled to the same exact lifestyle that they were born into. I think by giving that sentiment it lets them know that it’s their own job to create the lifestyle they want to live in as adults. We do always tell our children that they are rich in love , talent and family, what they do with those gifts is their responsibility. Thanks for a great post!
Kathy, wow! Everything you said should be cross-stitched on a living room pillow. “Our children are rich in love, talent and family, what they do with those gifts is their responsibility.” I love that!!!
I love Eleanor Blayney’s quote. I think Warren Buffet raised his kids like that. I read a story once where his daughter asked for money to buy a new dining room table and he said “no.” Also he is wiling most of his fortune to charity.
Yes, Warren Buffett and Bill Gates are part of the Giving Pledge wherein the majority of their wealth will be given to charity upon their death.
What a clever response by that mom. The amount of entitlement that I see in today’s youth and young adults is both staggering and terrifying to me. Congrats on being the first on the Sharefest list you early bird!
~ Ferly
Gifts We Use {to grow, love and serve}
Ferly, ironically I am more of an all nighter versus an early bird. I happened to be up past midnight when the Sharefest email came through. Couldn’t believe my luck. I have been meaning to respond to a previous comment you had made. I am drowning in emails after a crazy work period, but will be in touch again soon!