Let's reexamine the importance and the skills that we need to teach for wealth to truly be generational for those to come.

• ...human nature & all of the world seems to dictate that money and wealth is going to dissipate as the generations progress. (02:15)
• What happens when there is a lack of purpose, a lack of autonomy, a lack of ability to pursue a mastery. And what this can lead to is a very unhealthy and potentially self destructive money mindset. (05:21)
• Give them that opportunity to master something completely new, then they'll have the building blocks of a happy life, a longer lifespan, and you know, as well as longer lifespan to the wealth that we're helping create. (07:58)

Quote for the episode. "Am I just trying to make my life easier for my kids because that automatically defaults to better? Or should I be trying to shape the mindset to enable them to go out and create a purpose, autonomy to move and a reason and a desire and a passion to go out and master something?" (09:04)

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Welcome to the EnjoyMore30s Family Finance

podcast. The only podcast dedicated to making life more

enjoyable for young families by hitting on the financial topics

that tend to weigh on us, stress us out, and distract our focus

from simply enjoying life.

Hello, thank you for joining me as always on the

EnjoyMore30s Family Finance podcast. Every week, as you

know, I'm talking to you about money so you can take steps

forward, gain that confidence, remove that financial anxiety,

because we want you just to be focusing solely on making your

life more enjoyable. This series, as you must know by now

we're in the eighth episode of it, we focus all of our energy

on the kids. We focused our energy on your kids with the

Your Kids Money Mindset series, because as a family, you know,

the kids are what we're all about. So we want to make sure

that we help you with that part of your life as much as

possible. If your kids are better off, we know that you'll

be happier too. And what we know is that we're not just trying to

get through this today. But we're trying to build something

for our kids. That's why we're listening. So their lives are

better. So their kids lives are better. But maybe surprisingly,

that can very often and not just in the US but all over the

world, it's not the case that that wealth goes on beyond the

third generation.

So as always, if you like what you're hearing, please make sure

to subscribe or follow us on Apple podcasts or really

wherever you listen. Clicking stars, writing reviews, it

really really helps us reach the literally millions of other

young families out there just like you.

Last week, we talked about those things called trusts, those

things you've heard about on TV, the movies, those things that

sound like rich people have these, maybe I should too, and

we broke down more as to what they are, and when you would

actually really have to be concerned with them when it

comes to your kids. So if you haven't checked that out yet,

please make sure to check it out soon.

Today's episode is actually a bonus episode. I had not

originally planned to cover this topic, but I happened to come

across it mid season. And it's titled Motivations: Money Lasts

Just Three Generations. So what we're going to cover today is

how human nature, all of the world seems to dictate that

money and wealth is going to dissipate as the generations

progress. The goal for today's episode is for you to become

aware of the challenges that are not associated with creating the

wealth. We're always focusing on how to create the wealth, but of

actually maintaining the wealth across generations, which

requires some really completely different techniques. And in

many ways, wealth is much harder to maintain, than it is to

create because it leaves your direct control. The Chinese have

a saying "wealth does not pass through generations". So that's

about as direct as you can get. The Japanese are a little bit

more subtle. "Rice paddies to rice paddies in three

generations". The Scots? "The father buys, the son builds, the

grandchild begs". And here in America, we use "Shirtsleeves to

shirtsleeves in three generations". So maybe you've

heard one or all of these. They all kind of go to the same

thing. What all of these mean, is by the third generation, just

the third, wealth is lost. And you have to start all over again

at the bottom. So why is wealth lost? What happens to it? The

first generation is poor. They have nothing, just their

motivations to be better. They have a purpose in life, to make

life not better just for them, but for their family. They're

alone. They want to be self sufficient. They want that

autonomy to create. And as they advance, they're trying to make

their business better and better. They're trying to get

that mastery. The second generation now gets to build off

the first. They likely saw, you know, to some degree with their

parents went through it wasn't you know, as hard for them

obviously. They saw how hard they worked. They heard stories

of how hard they worked to get there. They're not building from

scratch. They have certain guidelines, most likely of the

direction their parents went in, but they still have enough

purpose, autonomy and mastery, those three things, very

important things. They have those aspirations to likely

continue carrying that torch on. Then we get to the third

generation, the grandchildren. The grandchildren never saw what

grandma and grandpa went through, it was more removed. By

now they've probably grown up with certain privileges, let's

say an easier life and that value for money, so the

relationship they have, the mindset they have when it comes

to money, is likely altogether different than just two

generations ago. And as you can see by the many sayings all over

the world, can cause the money to quickly dissipate and starts

that cycle all over again for the next generation to come to

start building up from nothing.

Now I had heard of the "shirtsleeves to shirtsleeves"

reference before, but it wasn't until a recent podcast episode

that I listened to by Nikki Unani and her Connected

Generation podcast, which is fantastic, by the way, where she

interviewed the author of a book called Intrinsic. And that

evaluated this very concept. What happens when there is a

lack of purpose, a lack of autonomy, a lack of ability to

pursue a mastery. And what this can lead to is a very unhealthy

and potentially self destructive money mindset. The ironic part

of really all of this, though, to me, is an easier life is what

we're all by default, trying to establish for our kids, right?

'We're working so hard for you, for your better life. We fall

down, you don't have to fall down, we'll fall down for you.

We take the risks, you don't have to take the risk, we'll

take the risk for you'. As human beings however, if you remove

our purpose, our autonomy, our ability for mastery, we

seemingly become lost. We don't have a direction. If life is

easy, like we're trying to make our kids lives easier. If we

make that easy, though, that means they may not have any

purpose. If their stability comes with limited autonomy to

operate, if everything has been mastered and created for them

already, where am I to go kind of a mentality. This really,

really resonated with me, because so much of what I'm

doing and working with middle class families, is creating

wealth for retirement, creating wealth for happiness and

otherwise. And thankfully, this can often lead to a surplus of

it for our clients, so that they may share more of it with the

generations to come. It makes them happy to give and make life

better for their children. In fact, we have to encourage many

of these people that can afford it, to spend the money. And it

sounds weird, probably having a financial advisor encourage you

to spend your money. But as you know, from listening to this

podcast, it's all about making life as enjoyable as possible,

not dying with a bunch of money in your pocket. What this all

kind of leads to is greatly amplifying the importance of

teaching your kids an excellent money mindset. This teaching

that you give them has to extend not just to them, but to their

kids and maybe their kids to be able to have wealth actually

last long term. A mindset then that establishes money as a

tool, with happiness in life as the goal instead of the goal in

of itself. If you solely just want them to work so that they

have money and stability, then the logic follows, if they're

simply given money and stability, then they're all good

to go. As we just saw, though, worldwide, not just in the US,

worldwide, that is not how it tends to play out. If we instead

encourage them to find a purpose that they love and enjoy, give

them space for that autonomy, even if it means failures along

the way. Give them that opportunity to master something

completely new, then they'll have the building blocks of a

happy life, a longer lifespan, and you know, as well as longer

lifespan to the wealth that we're helping create. Talk to

your kids when they're young. I can't encourage that enough.

Teach them why they are really working when they get older.

Even talk to them jointly about what they may like to do with

the wealth that they eventually receive. What would they like to

help create? What lessons would they want their kids and their

grandkids to learn and develop? If every generation kind of

looked at the money as a nicer and nicer set of tools to create

with, I mean, what wonderous things could they all set their

mind to building?

So again, you know, I want you to walk away from today's

episode with a new mindset when it comes to generational wealth,

and maybe reexamine the importance and the skills that

we need to teach for wealth to truly be generational for those

to come. So we want to expand our mindset. I hope you're

walking away with an expanded mindset of "am I just trying to

make my life easier for my kids because that automatically

defaults to better? Or should I be trying to shape the mindset

to enable them to go out and create a purpose, autonomy to

move and just a reason and a desire and a passion to go out

and master something" because at least in my opinion, I feel like

for my own kids as a parent, that's what I see them making

them really truly happy in their lives.

So thanks for tuning in today. Next week we have the final

episode, which is the series recap for Your Kids Money

Mindset. I've really you know, received such a good charge of

energy from the season. Getting to just focus and think about

how to enable you to not just help yourself, but to really

help your children as well both practically as well as maybe

mindset and emotional-wise. So I very much thank you for tuning

in, being a part of that experience.

Overall if you're able to implement what we cover like I

say every week, fantastic! You have less to worry about, more

focus on enjoying life. As always, if you do want me to

help with anything, have questions you need help in

clarifying, check out the Ask Joe section on the show's, on

the show's website, excuse me, EnjoyMore30s. That's

EnjoyMore30s.com. Until next week, thank you very much for

joining me today and I really look forward to connecting with

you again soon.

The conversations on this show are

Joe's opinions and provided for general information purposes

only. They do not constitute accounting, legal, tax, or other

professional advice for your specific situation. You should

always seek appropriate advice from a financial advisor,

accountant, lawyer or other professional before acting upon

any content or information found here first. Joe is affiliated

with New Horizons Wealth Management LLC, a branch office

of TFS Securities, Inc., and TFS Advisory Services an SEC

Registered Investment Advisor Member FINRA/SIPC.