Maybe you’ve heard of the “shirtsleeves to shirtsleeves in three generations” phenomenon. A recent study by the Williams Group, a wealth consultancy, surveyed over 3,200 families over a 20-year period. They found that about 70% of wealthy families lose their wealth by the second generation and 90% by the third.¹ For affluent families, this is a scary statistic. 

What’s the biggest reason for this phenomenon? Lack of communication and preparation. It’s not bad investments or poor estate planning — it’s that the next generation simply isn’t taught how to manage what they inherit.

You’re probably already thinking about how to make sure your heirs are protected and set up for the future. But here’s the thing: passing down assets is one thing. Passing down wisdom? That takes a little more work — and a lot more conversation.

The risk of silence 

One of the biggest threats to generational wealth isn’t taxes, markets, or economic downturns, it’s a lack of financial literacy. When generational wealth doesn’t make it to the third generation, it’s because most heirs never received the education or experience they needed to manage it wisely.

If no one’s ever shown your kids or grandkids how a trust works, explained the purpose behind your investment strategy, or taught them how to budget, how can they be expected to steward it?

Education is key

The key is to treat wealth like a family business — something that requires involvement from everyone, education, and clear values. And that starts by bringing your heirs into the conversation. Not all at once. Not with spreadsheets and investment policy statements (unless they’re into that). But with purpose, clarity, and help from your wealth team.

Here’s how we help our clients prepare the next generation:

1. Start early, but keep it age-appropriate

Talking about money shouldn’t be a dramatic reveal when someone enters adulthood. We encourage parents and grandparents to start having small, meaningful conversations early —whether that’s helping a teenager open a Roth IRA with their summer job income or letting a young adult sit in on a family foundation meeting.

2. Build a family financial philosophy

Every family has values. But few take the time to articulate them when it comes to money. We help families create a shared vision for their wealth — why it exists, what it’s for, and what kind of impact they want it to have. That clarity becomes the compass for future generations.

3. Bring the right people to the table

We love working directly with the next generation. Whether it’s a college student who wants to learn about ETFs or a young professional trying to balance a 401(k) with student loans, we’re here for them. 

4. Make it personal and fun

Not every conversation about wealth has to be a seminar. No jargon. No lectures. Just real talk with advisors who care.

Wealth that lasts is taught, not just transferred

We believe the best legacy you can leave isn’t just a portfolio — it’s a generation that’s equipped, empowered, and educated to make wise decisions. And that kind of legacy? It takes intention, planning, and a little help from people who love what they do.

We’re here to walk alongside your whole family, not just manage your assets. We’ll help you navigate the awkward money conversations, avoid the landmines, and raise heirs who are ready for what’s ahead.

Because when your family’s prepared, you can rest a little easier—and maybe even enjoy your blessings along the way. 

Let’s talk. If you’re ready to start planning for the next generation, we’re ready to help your family thrive for generations to come. 

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