In this piece, Australian Financial Review journalist Michelle Bowes explores how wealthy parents can help their children appreciate the value of money and hard work. Alvia CIO Josh Derrington shares strategies used by Alvia clients to foster financial responsibility and resilience among the next generation.
Derrington says parents who put their business and wealth accumulation ahead of spending time at home with their families often run into problems when the wealth is passed to the next generation.
“The really good examples I’ve seen haven’t put the business before the family. The really good ones can thread the needle of building wealth and running a business as well as running a really stable household.”
As a rule, he says, Alvia will turn down working with clients it doesn’t believe have the right family culture to facilitate the retention and growth of the family’s wealth.
“We want to be able to manage the capital through multi-generations. I know if the parents haven’t put the right value set in place, then we are going to be looking for a new client come the second generation.”
For families interested in the challenges and rewards of preparing their children to be responsible stewards of family wealth, this article offers practical guidance and real-life examples.