Generational wealth comes in many forms, but the simplest way to put it is that it includes any financial resources you give to your children, their children, and beyond, offering them a head start in life so they don’t have to start from zero.
When you pass away, any money you leave to your heirs and things like real estate or life insurance payments also serves as generational wealth that future generations of your family can use.
Even if you don’t have vast amounts of money to pass on to your children, you can help them tremendously by educating them about money.
Knowing that you’re there with an extra bedroom to sleep in when times are hard or some extra grocery money when times are tight can help your kids mentally and financially. They’ll be more able to do things like taking a risk on starting their own business or spending more time on a job hunt to find a great career instead of a lower-paying job.
As they get older, lessons about saving money, planning for the future, and safely using debit or credit cards can help make sure they have a good foundation for independence, managing their finances, and thinking about their opportunities to create generational wealth for their children.
Make sure that your kids know that you’re there to help and serve as a support system for them. Even small gestures to make sure they know you care can help them feel more comfortable asking for help, saving them from falling deeper into a financial hole.