Combating Affluenza

By Matthew D. Kane | President | Partner

It can be difficult to intentionally undermine an entitlement mindset. I often call this trend affluenza. Why? Because entitlement can be caught – and you have no idea how you caught it.

We see it in wealthy families frequently. While first-generation wealth holders aren’t immune, it’s usually generations 2 and 3 that are more susceptible. They enjoy the wealth, but they don’t always inherit the experience-earned wisdom that created it.

In my experience, the most effective way to undermine an entitlement mindset is by communicating with your children early and frequently. Set clear expectations very early on for your children in topics like work and education.

Even if they are growing up surrounded by more wealth than you did, you can still set expectations that help them develop and mature.

The scary part is, if you don’t communicate that clearly to your children, somebody else will. There are so many voices in the lives of our children, predominantly from outside the family, and that may not be teaching things you want for your children.

When it comes to your family’s relationship with money, don’t assume your kids understand what’s important to you. Don’t assume they would value financial discipline, generosity, or other values that matter deeply to you.

Don’t assume. Communicate early, and communicate intentionally. Make sure the next generation is equipped with the wisdom to steward your wealth and your legacy.