How can wealthy families teach children to handle family wealth?
Short answer: Richard C. Wilson's history teacher and petroleum engineering examples show how salary matching can keep family support from steering a child toward the higher paid path.
In a talk to private investors, Richard C. Wilson discusses practices he has seen families use to manage wealth and prepare the next generation.
Richard on support from a family bank
Richard C. Wilson says a family bank may cover college, graduate study, a first home or a medical emergency instead of giving a large inheritance. (17:10) (at 17:10)
Richard on family backed business ideas
Richard says a child can ask family elders to support a business idea, with the elders acting as a board of advisors. He describes learning by doing as a reason for this approach. (17:37, 18:06) (at 17:37)
Richard on matching children's salaries
Richard says some families match a child's salary whether they choose to be a history teacher or pursue a PhD in petroleum engineering. He says this lets them choose while avoiding millions of dollars in their bank account. (18:34) (at 18:34)
"they learn by doing in a small basis and they'll learn more that way than going to school"
From Richard's exclusive Billionaires.com interviews
Lessons from Richard C. Wilson's one-on-one interviews, as published on each interview page.
- Anu Aga: Check before you give. Study the work of an NGO, ask more questions, and visit it if you can. This leads to an informed decision.
- Tim Draper: Make your customers your sales force. Hotmail put a message at the bottom of the screen inviting people to get free email. It spread to 11 million users.
- Don Wenner: Commit to scale. Don's major turning point came when he decided to build a great company that makes an impact. Making money and being successful was not enough for him.
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Frequently asked questions
How can wealthy families teach children to handle family wealth?
Richard C. Wilson's history teacher and petroleum engineering examples show how salary matching can keep family support from steering a child toward the higher paid path.
How can families discuss wealth with children?
Richard says family vacations can be a time to talk about the family business, what is happening and future opportunities. (22:16)
What can family meetings help clarify?
Richard says families can explain the story of how the wealth was created, why it exists and what it represents. (20:24)
Sources
Quotes are copied from the video captions and checked against the transcript. Timestamps link to the moment in the video. General information only, not legal, tax or investment advice.