Third Generation Curse On Wealth: The Families Can Break It With These Steps

If only people across the world would have been financially literate, the Third Generation Curse on wealth (idea that wealth is built by the first generation, maintained by the second, and wasted by the third) could have been mitigated significantly. Wealth does not usually survive beyond three generations, an old Chinese verb, speaks volumes about the widely prevalent financial illiteracy and financial mismanagement. So, how do the families break this generational curse on wealth? There are three solutions to mitigate this curse. 

By developing relevant skills

The younger generations need to be educated about the investment techniques, financial management and financial discipline as well so that they can make a judicious use of the inherited wealth. Involving the younger family members while taking investment decisions can help them inculcate an idea about wealth management and also adding into it by investing it in the stock market options. Children can also be taught about how their previous generations toiled hard to create wealth so that they may realize its value and not squander it. 

By making contacts and relationships

Many families often avoid making any discussion related to finances in front of children so that they might not develop a sense of entitlement and anxiety. However, this is a wrong practice as doing this might make them incompetent to handle the financial emergencies in future. Instead, the families should encourage such discussions to foster a sense of curiosity amongst the younger people to know about the financial terms. Eventually, they will be encouraged to develop contacts with people specializing in finance related knowledge, and break the generational curse by responsibly managing the family wealth. 

How Uber wealthy people preserve their wealth

Uber wealthy people maintain exclusive social circles to preserve their wealth to get access to a network of business collaborations and other financial opportunities. These uber wealthy circles comprise the Rothschilds, a European banking dynasty, that traces its origins to Mayer Amschel Rothschild. Living in the crowded conditions of Frankfurt's Jewish quarter, Mayer Amschel started working as a coin sorter and currency exchanger. He and his spouse Gutele had 10 children, 5 of which established the Rothschild empire across Europe. 

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