Inheritance planning often focuses on numbers—assets, accounts, and distributions. But a true legacy is about more than just wealth; it’s the values, knowledge, and responsibility that empower the next generation to carry it forward. Leaving a financial legacy means ensuring your family not only inherits assets but also the wisdom to manage them wisely.
Teach the Value of Financial Planning
One of the best gifts you can give is the habit of planning. Budgeting, saving, and investing don’t have to be overwhelming if you show your kids the ropes. Share your wins and even your mistakes—real-life lessons stick better than any inheritance. For instance, when my kids were in high school, I taught them how to use a finance app to track their expenses. They had to match it to their wallet before they got their next allowance. That lesson? Priceless.
Share Your Investment Principles
Every investor has a unique money personality shaped by experience, risk tolerance, and goals. Explain your investment philosophy so your adult children understand why you made certain choices. For example, if you value diversification, share how it worked for you; if you’ve focused on low-risk growth, explain how it fits with your goals.
These insights give your adult children the background to make informed choices while respecting the principles that built your legacy. A well-informed family can uphold these values long after you’re gone.
Model Financial Discipline
Wealth management isn’t just about markets—it’s about discipline. When your family sees you saving, spending wisely, and avoiding debt, they learn by example. Discipline doesn’t mean deprivation; it’s the key to real freedom. Share strategies like automatic savings or avoiding impulse buys. Involve your family in deciding where charitable donations make the biggest impact. These habits help preserve wealth instead of letting it slip through your fingers.
Passing down financial wisdom alongside assets builds a legacy that lasts. Teaching your kids solid financial skills prepares them to handle both wealth and responsibility. To help prepare your family for successful generational wealth transfer, be in touch with our team at profile-financial.com/call.
Douglas Goldstein, CFP® is the director of Profile Investment Services, Ltd. www.Profile-Financial.com. He is a licensed financial professional both in the U.S. and Israel. Call (02) 624-2788 for a consultation on how to set up your American assets to meet your financial goals. Securities offered through Portfolio Resources Group, Inc. Member FINRA, SIPC, MSRB, FSI. The opinions expressed are those of the author and not those of Portfolio Resources Group, Inc. or its affiliates. Neither PRG nor its affiliates give tax or legal advice.
Published March 26, 2025.