When it comes to inheritance, the common wisdom is that when parents pass on, whatever they have goes to their children. Should this always be the case though?
Photo by Larry Jacobsen.
Billionaire investor Warren Buffet has famously stated that 99 per cent of his wealth will be donated to charity either within his life or by his death. As finance blog One Cent at a Time points out, if you have a sizeable amount of money saved up by the end of your life, giving 100 per cent of it to your kids can skew their perception of money:
I don't want them to grow up spoiled. I'm not rich enough for my children to afford services for the super-rich or swanky lifestyles in Meadow Lane, the so-called "Billionaires Lane" in the Hamptons. But I also know that if I left them my fortune, they would not appreciate the value of money.
The most important legacy that we can ultimately leave them is not money but the life lessons that we have imparted to them that will enable them to live their lives well.
Obviously (and unfortunately), not everyone will have enough at the end of their lives to afford such a decision, but when it comes to long-term financial planning, what's your goal? Do you have a set amount of money you'd like to leave for your children? Or do you just want them to find their own way?
Reasons Why I'll Not Leave My Fortunes to My Kids [One Cent at a Time]