What our children learn through the process pays long-term dividends.
Why it Matters
Financial wealth, like other types of wealth (social, intellectual, physical, etc), creates numerous opportunities for young people to gain competency - while becoming more balanced human beings.
How to Get There
Collier mentions five ways family philanthropy can be life-giving for children brought into the process:
Provides a safe environment for kids to learn about money/wealth management and working with others.
Provides opportunities to gain a broader understanding of the meaning of wealth and the family's legacy.
Provides tangible ways for articulating - and affirming - the family's core values.
Offers opportunities for personally experiencing the impact of the family's legacy.
Gives young people the experience to gain competency in the "real life" of wealth and philanthropy.
The Bottom Line
Successful families start with a guiding mission and purpose for their wealth, giving them a clear direction on the how, where, and when.
This blog post, and almost all of the posts in this series, summarizes sections or chapters of Charles W. Collier, Wealth in Families, Third Edition. Harvard University. 2012. You can dive deeper into this topic in Chapter 6: Psychological Parenting: Managing Oneself.