I think celebrity parents announce this publicly to prevent people from going after their kid's money, thinking there won't be any. Like preventing them being married to someone who had their eyes on an inheritance. That's my theory! I think they in the end really will leave them a lot of money.
I agree that they say it for safety reasons and also to remain relatable in the public eye. Also, Their definition of "nothing" may be a smaller inheritance rather than the hundreds of millions Guy is worth.
That was attributed to Warren Buffet in a recent biography. When his son wanted to drop out of college to become a musician, dad gave him $100K on the theory that it was enough to support him for a couple years while he got his career going, but not enough for him to think that he didn't need to work. He also gave each of his grown children a chunk of money that they could use in a charitable venture that meant something to each of them personally.
Rachel this is such a fantastic topic. My husband and I are in our late 50s. No debt. House paid off. We are in this predicament right now. We don’t have a lot but would love to help our children. They are working and trying so hard. More videos would be great. Thank you.
My parents do this well. When the housing market was lower my parents gave my husband and I a few thousand dollars to put toward a down payment on a house that made the difference between us buying a decent modest house and an extreme fixer upper (my husband was in grad school and we had a baby, so fixer upper would have been incredibly difficult). We are still enjoying low monthly payments 10 years later because of those couple of thousand they gave us to buy the house.
I really enjoyed this video. Teaching kids early about money, contentment and gratitude and helping them not to start their life with loans is important to my husband and I. Great topic, Rachel.
My sibs and I grew up hearing from dad that we won't be inheriting anything from him. That we are not rich and the only gift he can give us is our education. He paid for our education. He passed away years ago and we inherited properties from him. We didn't really expect anything from him. We are all doing well and tbh we didn't need it. It's a welcome gift however. We will all probably pass it down to our children.
That's different to telling them you have 100 million and they aren't getting anything, unless you jump through a shed load of hoops set up by him. They mightn't be university degree material anyway. A lot of ppl aren't. But he doesn't even give them the opportunity to do something else. They might want to go into property development, or buy and work a large farm or ranch, or something else not requiring a university education twice over.
I don't think you HAVE to leave anything to your children but it would help them and the generations to come if you do it correctly. For these celebrities, or in general persons of great means, if your children are waiting on you to leave them something then you have already failed them. Teaching them values, helping them while you're alive would be way more beneficial to them, that way, whether you leave them anything or not, they will be fine, which is what you want. The inheritance is the icing on the cake. What you leave in them is way more important than what you leave to them!
I was 51 when my mom died (years after my dad died), and my husband was 59 when his mom died (years after his dad died). Yes, at that point we were firmly financially established, so the inheritance from both was nice, but not something we "needed." None of our parents grew up with money (quite the opposite), and my husband and I didn't either. We lived frugally (and still do, even in BS7). We never expected to inherit anything of consequence, so when we did, it all just went towards retirement. We are saving up for our oldest son's down payment (he doesn't know😉).
Great topic Rachel. You are diving in to “meatier” topics and this video was great. My husband and I have given our children money for downpayments on their homes and hope to leave them some more when we pass. We find joy in helping them now when they need it . 0:20
A majority of people who are able to buy houses and even own businesses do so with money from their family. My father helped us with our first (small!) homes for down payments. We paid him back as he expected with money from our own incomes.
That's absolutely not true. Depending upon the specific dataset that you look at, somewhere between 75% and 90% of all millionaires are first generation, and fewer then 20% of millionaires received any inheritance at all. Of those that did receive an inheritance, the median was under $50,000. And these are stats for millionaires. For those who are far less wealthy, the data shows that they get even less help from their families. Many people don't want to believe this, but most financially successful people in this country are self-made, and first generation. We don't want to believe this because we want to be able to explain how other people are able to gain wealth, but the data doesn't lie. I'm the son of a factory worker, my parents didn't give me money, and I spent about half my life in the military (so you know I didn't make a windfall there). I worked my way through college, lived in a modest apartment and minimized expenses to save for my first business, and continued to work side hustles throughout. I made my first million dollars by age 48, at at that point, I'd never had an actual salary greater than $85,000. When it comes to business owners (and millionaires), I'm the norm, not the exception.
@@someoneelse6934 I’m not sure what she might be bias towards. Obviously she completely endorses the Ramsey program. I just like her whole personality and demeanor. Despite the fact that she’s Dave’s daughter she is still my favorite character. No offense to any of the other good folks.
Me too but I’m already financially settled as our my 3 siblings. It may be different if we were flailing. It also helps that my parents have taught us to be generous despite needing to live frugally.
My parents taught us that their money was their money. Anything they leave us is a gift. And if they end up by some horrible twist of fate not having enough, I will take care of them. Love is more important than money.
This is hard and maybe unwise. The way you become millionaires is by not spending it, so if your parents have money, odds are, they don’t really see the need to spend it. Also, in my experience, the purpose of money is to change lives. A couple hundred $k is enough to sidestep either a serious life reversal or invest into something truly good like starting your own business or get an advanced degree. Your parents are likely to be too old to benefit from that sort of thing, but kids and grandkids? Someone will have a need. My son needed a special school out of the blue in 2020. It was $70k / year for 3 years. I paid it. He went from Ds/Fs to A/A+ and will soon go off to college. I don’t think that would have happened in the public school. He needed more individual attention that that 2500 kid school could provide.
Guess they just hate their kids? I really don't know why they wouldn't want to help them in life. Not saying they need to give it all to them but come on. You decided to have kids, help them out when you can.
My aunt passed and I inherited some of her portfolio and cash savings, I’m 28 with about 400k cash in savings and as usual everybody’s preaching invest, so what stocks are a good long term buy, only major purchase I intend to make is buying a home in 5years from my returns
Same, I just use TH-cam for research purposes, I run all my major investment through an investment adviser, the market is just too unstable to handle things on your own.
This topic is why multigenerational living is important and necessary! Growing up with greats and grands you get a perspective that is unmatched. You will learn the true growth from geneeagion to generation and if you are a person of character and integrity you want to continue that forward ans not allow provress to be stalled or wasted with entitled behaviors. Generational wealth needs generational family teaching each other or it is a blip.
I never put this into words, but yes! I wholeheartedly agree with you! ❤ I grew up watching my grands, greats, and a great-great. They were all adults during the Great Depression. The deep impression left on my siblings and cousins has mostly been permanent throughout our lives. I'm so very grateful to be born into such a rich and beautiful family, allbeit, each household might appear quite poor in today's age. In actuality, they lived with great sacrifice, worked hard, met their needs, and saved! 😍
I grew up close to my grandparents, and I learned those lessons from their having lived through the Great Depression. It’s not necessary for families to live together, but it’s really not good for kids to grow up without extended family in their lives. My grandma taught us good manners that have mostly disappeared from society.
Charity begins at home......so they say. So you can give all you want to others, but if you're not extending that to your own kids first, then who do you expect to give to them?
My mother was a librarian and my parents divorced when I was in my late teens. She was a child of The Great Depression and very thrifty. She knew she couldn’t depend on her income/retirement and so converted the family home into a boarding house. Her parents left her the farm that allowed her and her sister to buy a couple of very small homes that they rented out. When she passed at 93, her estate was worth over $1 million. Her inheritance allowed her to live a stable retirement. My siblings and I don’t ‘need’ her money, but it sure was nice to have excess funds for my son’s college tuition. I think the most important thing is to teach your children to work hard and be independent.
But working hard doesn't always pay you well. I think with each generation life is getting harder. My uncle told me that he was able to work and go to college and pay 100 of it with working. He worked for a college education and was well rewarded with it. owned and operated three business. My dad on the other hand inherited the small family farm. He worked hard every day Sunrise to sunset, not a day off. It did not pay well at all. We lived at the poverty level. We never went hungry, both my parents knew how to garden and preserve food. We had a large garden and orchards that fed us year around. Both my Dad and Uncle were born during the great depression.
Being an estate planning attorney, I deal with people of this mindset occasionally. Of course, your kids aren't entitled to a penny. However, given the uncertainties of the future and everything outside our control that can go wrong in life, I find the, "I started from nothing and made it" attitude to be short-sighted. There is plenty you can do in your estate plan to incentivize your kids and prevent them from being loafers without disinheriting them. I'm not a big T.D. Jakes guy, but he's right when he says, "What you leave to them is far less important than what you leave in them."
My problem is not that my parents will leave me nothing if they were broke, it is there money. It is that my parents were left huge $$$$$ from there parents and majorly benefited from inheritance, but my parents have said they are leaving everything to the SPCA because that is what they want. Just seems hypocritical.
Boomers don't have a concept of wealth outside of themselves. My mother made me buy the house from her that she inherited. After that, I told her that she better spend any money she has because I will burn it if she leaves it to me. If I'm only good enough to receive your money after you die, then I refuse to accept it.
I agree with @someoneelse6934. It is THEIR money, so they can do whatever they want with it. Too many kids think they are entitled to anything their parents have. Whether the parents earned it, or inherited does not change the fact that it is their money. It is the parents' decision to do what they want with their money. If their kids have a loving and respectful relationship with their parents and participate/interact in their lives, it is more likely they will get an inheritance when the parents pass away. If their kids are rotten to the parents and never see them, why would parents want their kids to inherit their assets when they pass away? It just depends on the situation.
@@RS-lw9cd I can definitely see genericwatcher2439's point - though. Parents who benefitted greatly by a generous undeserved gift from their parents did not see fit to do the same to their own children. I wonder why. Probably more to the story. Maybe the parents aren't really very loving.
My mother single-raised me and my other 3 siblings, we are used to not having any money to buy food/water/gas/electricity, even money for going to school. She cut me off completely after high school, but since she has mentioned cutting everyone off years before; 2 of us managed to get scholarships to top universities local & international, 1 of us pay through working, 1 is however failing and still hasn’t receive diploma in 6 years. I can agree with Rachel on moderation, going extreme leaves someone behind, or few with mental damage 🎉
Very important topic. Great content as always from Ramsey. Just because a wealthy person doesn’t leave money directly from their “estate” it doesn’t mean the kids aren’t getting millions in some other form. Charitable remainder trusts and other types, life insurance and other highly creative legal avenues to minimize taxes on estate transfer are available to the wealthy as they have the money to hire top estate planning experts. Giving all of one’s money away to charity and having that trust pay for a 100 million dollar life insurance policy to benefit one’s kids gains them the claim of I’m giving all of my money to charity and not my kids. Yet indirectly the kids get tax free inherited wealth. I’m not an expert but there’s many avenues available to someone who has the means to hire the best experts.
😢😢my 1st husband was taught that if he saved money, he was expected to use it on things he needed later. But if he hid the money or spent it, they would step in and take care of it. It ruined him.
I have done things like college prepaid, a life insurance policy, opened investments. This over time will be a god sent for a child to have in adulthood. It’s also expected and I teach them to do this on their own to continue building that wealth. Whatever I have left in my later years is theirs when they don’t need it and they can continue to do for their children and teach. Generational wealth and knowledge to build is priceless.
My thought has been to put my money in a trust fund. When each kid turns 52 yrs they will be granted up to three times their net worth at that time. This will encourage them to work and build personal wealth but then may allow them to retire early and enjoy their maturing years.
Seek first the kingdom of God and all these things will be added to you. That is a Bible verse that I strongly believe it. When is parental 'help' not help? When the children learn to rely on parents rather than God. Eventually, those kids will think they don't need God at all and turn away from Him. What an eternal disaster that could be! It is definitely okay to gift children with some money or other items, but time, attention, discipline, etc. should never be replaced by money.
I dont want anything from my parents, I just want them to enjoy and be happy during their golden years. They prepared me well to confront life and make my own wealth.
I think as in most things in life balance is the key. I think of the inheritance I leave my kids as a safety net. I will tell them there is little or nothing for them to ensure they know they have stand alone, but in reality, there will be a safety net always for them if needed, wether I have passed on or not.
My wife and I started with nothing. We were both dirt poor. Really dirt poor. We have managed to excel and save and were quite generous to our children growing up. Sent them to college, took them traveling around the country and the world. Over the years we have managed to save for retirement and now are millionaires. My intention is to spend every cent on my wife and I. I raised my children and set them up to forge there own path to success. My obligation is done. Now my grand kids are another issue....
It’s important for parents to responsibly provide with expectations of their kids achieving accomplishments. And providing is healthiest when it’s contingent on children achieving and pushing themselves. This is the healthiest approach. Assist and expect. This balances trust in the world when you push yourself. Unhealthy entitlement is avoided, yet trust in oneself and the world is developed.
Parents declare they won’t leave money to make sure kids are not lazy and develop the right attitude to living life and working hard but when they die I’m sure most parents leave their kids money. The rich Almost always think about and plan for generational wealth and establishing a legacy that will be remembered and celebrated in the succeeding generations.
I remember it said that JD Rockefeller only gave each son 1 million dollars at 21 years of age and swore to never give another penny after that to allow them to start their own businesses, One started a major West Coast Bank, and an a San Francisco newspaper!!!!!!!
I am living frugally in retirement to give my kids as much as possible. I love them dearly and want them to have the security I didn’t. I’m also training them on how to invest, how to manage money, and how not to waste it.
Inheritance is a very personal thing. There is no right answer for everyone. I say if it's yours, live as well as you can. Don't worry about leaving money for anyone.
I love what your dad says: match what they save for their first car, their down payment on a house, etc. etc. it rewards work, frugality, saving, etc. and takes the scary part out of growing up
Some years ago a book came out called the millionaire next door, the author identified the same disincentive for children with an expectation and what he called economic outpatient care as we see with welfare recipients. Every time you give or promise you extinguish some fire in your children. Make sure they think your broke, unless they are involved in your business and have earned the right to know. Better to eave funds for their children's education only but by all means help out but make it a surprise not an expectation, do a search and pay down their mortgage but only after they've qualified and been paying for it on their own for some time. By paying direct to there mortgage for example you prevent them from wasting the gift, most won't even notice that the balance has dropped.
Awesomes topic and Awesomes presentation. BUT I do have one criticism. IMHO a parent can't "give" a person dignity. A parent, more than anyone else, can instill morality and ethics into a person's mindset, but dignity (again in IMHO) must be earned within one's own heart. I love watching you and everything you, and your family, is "preaching"! VERY positive! Thank you.
I grew up with my parents struggling with money, even homeless at one point. Now my parents are billionaires and I feel gross that they are planning to give me and my siblings an inheritance. Seeing my parents go from homeless to Billionaires makes me feel like I need to do the same and the idea of benefitting from their struggle and now thriving feels wrong to me. Idk what the right answer is, but it is a weird kind of tough.
What fun food for thought. I actively see the consequences of adult children becoming “waiters” waiting for parents to pass on. I know what starting with zero equates. In theory giving money before your death is wonderful! I could also see a benefit to matching 1x or 2x whats in an adult childs 401k or saving account at the time of inheritance. However to word it so it can’t be taken advantage of. Thanks for sharing Rachel!
Again…Shaq is the King. Best idea I’ve ever heard. It’s here. Be useful. Be productive. Be ambitious. You be rich. They’ll all make it on their own. Teaching them how to earn things is huge
I had a friend in high school. I didn't realize how well off his parents were. Sadly they both died young, and he and his siblings were left millions. It ruined his life. He drifted from one venture to another. But it didn't matter whether they worked or not, so he never really tried to make them work and just threw money away. At least he didn't get into drugs or anything like that. But he's in his 60's now and really hasn't done anything rewarding or worthwhile his whole life.
Ultimately the question is what is the appropriate level of deprivation? Make it hard enough that they have to work and be intentional but not so hard that they lose everything.
My great great grandmother was at my 13th birthday party at the age of 106. I keep that in mind when preparing my future estate because my kids will likely be post retirement, so they get a decent piece of the pie but an equal piece is divided amongst grandkids great grandkids and great great should they be born before I die. If my descendants follow good money principles my great great grandchildren could be billionaires in their old age.
My wife and I paid our own ways through college. But we also house hacked and moved my grandpa in with us so we could move out of our starter home into a bigger house to start having kids. We will fully fund our kids' college education. I want to set them up right. I want to feel great full for that and pass that on to there kids. I want to help my grandkids when the day comes with ther house down-payment. I want every generation helping the next so we can establish a dynasty. Sure some kids won't make it. The weak will parish
The trick is to raise children and make sure they understand that what they get is GENERATIONAL WEALTH and while they get to enjoy the fruits of the money they have an obligation to pass it on to other members of the family. I have received the fruits of the fourth generation and have the obligation to pass it on. So do they have that same obligation.
Giving your kids millions of dollars while they are young is pretty likely to mess them up and make them targets for grifters. Helping them get an education and a start on something like a down payment on a house can set them up for success in their own lives. As self-made millionaires, people like Fieri probably don’t see starting from modest means as a disadvantage for their kids.
Children need to be taught how to work and earn their money. They need to be taught how to manage their money. I learned these lessons the hard way. Grew up poor and never learned to manage the money I earned. All my money growing up paid for my basic needs and helping my parents bills. As an adult, I got into debt and had to file bankruptcy. Now I won't have any type of credit. If I can't pay cash for it, I don't buy it.
Who said any of them are going to wait until they are dead? They start a business with them and invest assets in the business. Adult child has years to grow the business venture and become self sufficient from the parent's seed money.
If you want to set kids up for success, make sure they have responsibilities within the household such as laundry, dishes, cooking, mowing lawn, changing tires and oil, everyday life skills. Have them mow neighbors lawns or walk dogs to earn money and teach them to save. Why pay someone when you can do it yourself. Leaving kids money most times does more harm than good.
A lot of times people, with lots of money put money in. So their children have access to the trust, but technically they aren't leaving the money to their children. They might leave them a little bit to make it more realistic, but ultimately, all of the money is going to.
I’m planning on passing on a trust fund to my descendants with strict limitations on how it’s withdrawn from so it will grow in perpetuity and never run out.
I don’t know if it is a right answer, but we funded their 529, then I started a company so I could fund their 401k through profit sharing. After that, our focus will switch to grandkids.
I’m not in my dad’s will. He is giving everything he has to forward the message of salvation and I’m not mad about that. I’m fine and if more people are ready for Jesus’ return, makes much more sense. The sooner we can get out of here the better.
I think it depends on the kids. You want any gift for your kids to help them in life. Sometimes, millions of dollars isn't what somebody needs. I plan on helping my kids throughout their lives instead of leaving them a big lump sum. I also plan on helping my grandkids, funding their 529s, etc.
I can see if the child is not responsible vs responsible is how have to look into this. Money can be stressful if get too much and don’t know how to handle. I do think though parents should understand their child at all stages of life to help grow and learn based on the path they are on. If right education and steps are done in developmental years that will make them more successful.
I felt really blessed my parents gifted me a $7,000 car when I graduated from college and got into law school. My grandpa left me an inheritance to attend uni debt free but I did take out student loans to go to law school (tho chose in state and one of the most affordable law schools in the country). For the kids in my family I like contributing to a college and/or first home fund and I also think having a matching requirement meets them in the middle. It incentivized them to work and save to meet the gift match so you’re not just giving to a kid who is unappreciative or lazy, but helps out tremendously with those first life stages in the 20s which are the hardest hurdles to leap over. I’m 31 now, a lawyer, married, and we own a house 😮💨 I also thank my parents for paying for our wedding. We kept it as affordable as possible while being very lovely and having 100 guests. That was just really wonderful and I know my mom appreciated gifting it bc she wasn’t able to have a big / nice dream wedding when she was broke and I was a baby when my parents got married.
At the end of the day, it is his money. If he wants to leave it all to Save The Snails, so be it. You are not entitled to anything, just because you are his child. If you hold a grudge because he left you nothing, that is your problem, not his.
Not nothing. Free college and even private school is pretty awesome. Step up in the world. Money for martial arts, sports, art classes. Language classes. Computer science classes. Anything they want to learn. That’s huge. And I’d trade what I got for my mom back any day.
I just gave my son $53,200 for a downpayment on his home. He has twin boys that he is raising alone with my help. He currently lives in a duplex that he will rent out when he buys a home. For the most part he is very frugal. He needed the help now not in 20 years when I’m dead.
I think the most valuable thing you can "leave" your kids is to teach them from an early age how to handle finances well. **Model it for them.** Then they can make and grow their own money and you can leave your money to your favourite charities.
My parents started from nothing. They got nothing from their parents. I got nothing and worked hard to get to where I am. I'm going to live large and I'm going to spend my last quarter in the hospital in the vending machine before I die. My kids are learning hard work. No free lunch.
I don't buy it. Celebrities HAVE to say that publicly. But in reality, they are way too vain to not want to leave a legacy or generational wealth for their families. I'm worth about $5 and can't afford to go to McDonald's, but glad to know that there's millionaires out there! 😅
I always told my parents they should spend their inheritance on themselves.. They earned it... Although that was more of a joke between us... It's always been important to them to know that they are going to leave something behind to us kids... Could my parents (my dad passed last year) have spent more enjoying somethings? Yeah. But I don't think he had any major regrets in that area, and that's really what it's all about. I kind of wish my mom got out and travelled a bit. She can't now, but I think she would have enjoyed it when she could of... But family has always been more important to her than travel, so it's a choice she has made happily. I don't think that is something she would change, even if she could...
$100 million and he can’t come up with a few thousand dollars to pay for his own funeral. That’s a punk move if my father said that they could just feed them to the dogs.
I find this so incredibly manipulative. These parents want to control their kids' behaviour even beyond the grave. If they are afraid of the child frittering it all away, or falling prey to a gold digging partner, put part or all of it into a trust fund, with regular monthly payments for life. And as for them maybe turning out to be lazy: so what if they are? 100 million is enough to keep multiple generations set up for life.
Let me rephrase so you get it better: I'm not planning to leave them anything. I want them to have minimum 2 degrees so they can do well in life on their own!!!
"Oh how blessed the young men are who have to struggle for a foundation and beginning in life; Struggle is the crucible of character"-John D Rockefeller "A very rich person should leave their kids enough to do anything, but not enough to do nothing" - Warren Buffett I think that line is paying for college. Having college paid for, you are giving your children the opportunity to do anything, but not so much that they do nothing. If you buy them a house I think that goes too far- you'd be (at best) robbing them of any opportunity to build character; and (at worst) your children may never face any sort of failure/adversity until much later in life- and they might start to believe they can do no wrong. Many CEOs and Owners have failed in business & life that way.
I agree with your advice however people need to keep in mind that the dollar is fiat and is quickly losing value. For example, in 1954, my parents paid approx. $12,000 for their home in California. A year ago my daughter paid $12,000 for a used Honda Accord with over $100,000 miles on it. Years ago it was not a stretch for the average family to own a home. Today many average wage earners struggle to own a car and pay rent. A home is out of the question in 2024 unless it's in a city like Mangum OK.
It’s not the dollar to blame. If the value of the dollar goes down it is a mistake to think you can only save wealth in dollars, or your salary can not go up to compensate. You are barking up the wrong tree. There are two real issues leading to housing unaffordability. First, our country has been building only about 60% of the homes it needed to for the last few decades. There is simply an acute shortage of houses to go around so that drives up the price of housing so that not everyone can have one, simply because not everyone can have one. (This is the natural consequence of underinvestment and the law of supply and demand.) There aren’t enough houses to go around for the number of people we have in the US. Talk to a builder about why he isn’t building like gang busters in the face of record high home prices. The other problem is that wages have remained stagnant (corrected for inflation) since about 1978, while GDP continued to rise. The missing profits went to wealthy people, many of whom invested in multifamily dwellings so they could make passive income from your housing shortage. What happened in 1978? Corporate boardrooms were forcibly converted from stakeholder primacy to shareholder primacy by a spate of activity investors and hostile takeover. The common man isn’t going to see much from our national prosperity as long as corporate governance philosophy says everything belongs to and goes to the shareholder. What national prosperty? We have tremendous national prosperity! It is the envy of the world! (See US stock market performance vs world since 1978.) You just can’t tell, because it has been stolen from you and most everyone else since 1978. The rich poor gap ain’t increasing for nothing.
@@ianollmann9393 IF the value of the dollar goes down? look at any legitimate chart indicating the buying power of the dollar and it's clear in more recent history that it has been on a steady decline since 1934. Unfortunately, salaries have not kept up. For example, in 1973 I was in my early 20s and bought my first home in California for $21,950. In 2024 Zillow has its value estimated at $721,700. That's 32.88 times what I paid for it. In my 20s I earned $1,200 per month. Today, people with the job I had back then earn on average $5,000 per month. My first home went up in value 32.88 times. Multiply 32.88 by my 1970s salary and that comes to $39, 456 per month salary! The job I had doesn't pay anywhere near that today.
@@ianollmann9393 My previous reply was removed for whatever reason. The short version is you are wrong about several things. Since discussion is not permitted here, I won't bother spending much time. The dollar became fiat after Nixon took us off the gold standard in the early 70s. Fiat currencies always die and the dollar is well on its way.
My parents helped me grad college debt free. I always told them that they were not my retirement plan. So even though there was $$$, my mom didnt leave me anything. My dad remarried and she spent him into a hole. So i did get $ which is enough to help with my kids college. But thats it, and i didnt expect it and u am grateful for it. I tell my kid, you make yourself. We will get him thru college, and there may be some $ for him. But i dont want him to count on it.
Unfortunately, I think that we now think very short term of ourselves and our families. If you go back a century or two everyone that had any generational wealth seemed very intent on who would become the new patriarch of the family. Usually this would go to the eldest son or at the very least the child with the greatest potential for success with it. I don't think this is necessarily right and it is sad to compete siblings against each other, but I there is an inherent logic to inheritance. I mean if you have a child that is a Holly Golightly and a child that is an investment banker it is probably better that you leave any left over wealth with them the later rather than the former. Wealth also should accumulate rather than diminish if properly diversified strategic investments are made. Maybe the best method is to pay for your kids education then select inheritance based on how far they go with that education. I mean an interpretive dance degree never saved anyone's family from starvation.
I think that the parents want their children to do something in life and if you are wanting to teach them something’s these wealthy people better contribute their money to helping society in some way is another reason they want to make a lot of money otherwise what’s the point in keeping it all for yourself…making that much?
People are living so much longer. And advanced care costs so much money. And your kids will be so old by the time you die. Help them now. Pay for college. Buy a used car for them. Let them live rent free while saving fora down payment on a house, or help them with down payment. They need the help the most in their 20s, not their 60s
I think celebrity parents announce this publicly to prevent people from going after their kid's money, thinking there won't be any. Like preventing them being married to someone who had their eyes on an inheritance. That's my theory! I think they in the end really will leave them a lot of money.
I agree that they say it for safety reasons and also to remain relatable in the public eye. Also, Their definition of "nothing" may be a smaller inheritance rather than the hundreds of millions Guy is worth.
Certainly a strategy.
I really hope this is the case. I cannot imagine making a decision to bring a kid into this world and not helping them as much as I can.
Very interesting
@ghostbird92 fine line between helping someone and enabling laziness and incompetence
My husband and I like the phrase heard in a movie. "Give them enough to do something with but not too much to do nothing."
Yea I love this phrase too!!
Bill Gates said that. He’s leaving his kids enough money that they can do something, but not so much that they can do nothing.
That was attributed to Warren Buffet in a recent biography. When his son wanted to drop out of college to become a musician, dad gave him $100K on the theory that it was enough to support him for a couple years while he got his career going, but not enough for him to think that he didn't need to work. He also gave each of his grown children a chunk of money that they could use in a charitable venture that meant something to each of them personally.
YESSSS. That's brilliant.
I heard that was a Warren Buffet quote.
Rachel this is such a fantastic topic. My husband and I are in our late 50s. No debt. House paid off. We are in this predicament right now. We don’t have a lot but would love to help our children. They are working and trying so hard. More videos would be great. Thank you.
Live and give! Great video, Rachel. There is indeed a balance in enjoying your money and also being responsible parents in faith.
My parents do this well. When the housing market was lower my parents gave my husband and I a few thousand dollars to put toward a down payment on a house that made the difference between us buying a decent modest house and an extreme fixer upper (my husband was in grad school and we had a baby, so fixer upper would have been incredibly difficult). We are still enjoying low monthly payments 10 years later because of those couple of thousand they gave us to buy the house.
*Think investment look up Donald Nathan Scott.*
I really enjoyed this video. Teaching kids early about money, contentment and gratitude and helping them not to start their life with loans is important to my husband and I. Great topic, Rachel.
My sibs and I grew up hearing from dad that we won't be inheriting anything from him. That we are not rich and the only gift he can give us is our education. He paid for our education. He passed away years ago and we inherited properties from him. We didn't really expect anything from him. We are all doing well and tbh we didn't need it. It's a welcome gift however. We will all probably pass it down to our children.
That's different to telling them you have 100 million and they aren't getting anything, unless you jump through a shed load of hoops set up by him.
They mightn't be university degree material anyway. A lot of ppl aren't. But he doesn't even give them the opportunity to do something else. They might want to go into property development, or buy and work a large farm or ranch, or something else not requiring a university education twice over.
I don't think you HAVE to leave anything to your children but it would help them and the generations to come if you do it correctly. For these celebrities, or in general persons of great means, if your children are waiting on you to leave them something then you have already failed them. Teaching them values, helping them while you're alive would be way more beneficial to them, that way, whether you leave them anything or not, they will be fine, which is what you want. The inheritance is the icing on the cake. What you leave in them is way more important than what you leave to them!
I was 51 when my mom died (years after my dad died), and my husband was 59 when his mom died (years after his dad died). Yes, at that point we were firmly financially established, so the inheritance from both was nice, but not something we "needed." None of our parents grew up with money (quite the opposite), and my husband and I didn't either. We lived frugally (and still do, even in BS7). We never expected to inherit anything of consequence, so when we did, it all just went towards retirement. We are saving up for our oldest son's down payment (he doesn't know😉).
Great topic Rachel. You are diving in to “meatier” topics and this video was great. My husband and I have given our children money for downpayments on their homes and hope to leave them some more when we pass. We find joy in helping them now when they need it . 0:20
A majority of people who are able to buy houses and even own businesses do so with money from their family. My father helped us with our first (small!) homes for down payments. We paid him back as he expected with money from our own incomes.
That's absolutely not true. Depending upon the specific dataset that you look at, somewhere between 75% and 90% of all millionaires are first generation, and fewer then 20% of millionaires received any inheritance at all. Of those that did receive an inheritance, the median was under $50,000. And these are stats for millionaires. For those who are far less wealthy, the data shows that they get even less help from their families. Many people don't want to believe this, but most financially successful people in this country are self-made, and first generation. We don't want to believe this because we want to be able to explain how other people are able to gain wealth, but the data doesn't lie.
I'm the son of a factory worker, my parents didn't give me money, and I spent about half my life in the military (so you know I didn't make a windfall there). I worked my way through college, lived in a modest apartment and minimized expenses to save for my first business, and continued to work side hustles throughout. I made my first million dollars by age 48, at at that point, I'd never had an actual salary greater than $85,000. When it comes to business owners (and millionaires), I'm the norm, not the exception.
Rachel has more wisdom and compassion than anyone on the Ramsey team. She’s a superstar.
You do realize she is biased too though as stands to inherit from her Dad….?
@@someoneelse6934 I’m not sure what she might be bias towards. Obviously she completely endorses the Ramsey program. I just like her whole personality and demeanor. Despite the fact that she’s Dave’s daughter she is still my favorite character. No offense to any of the other good folks.
Bill G. does not deserve any credit for anything good. Please do not use him as a role model. Gross.
👏👏👏
Guy is evil just for creating windows alone, BRUH!
What a dumb comment. Stop drinking the Kool aid!
I want my parents to spend it all on themselves. They deserve it.
I'm the same way. I tell them I hope they live long enough to leave me nothing.
Me too but I’m already financially settled as our my 3 siblings. It may be different if we were flailing. It also helps that my parents have taught us to be generous despite needing to live frugally.
My parents taught us that their money was their money. Anything they leave us is a gift. And if they end up by some horrible twist of fate not having enough, I will take care of them. Love is more important than money.
@@christinewallace9251you have fantastic parents!
This is hard and maybe unwise. The way you become millionaires is by not spending it, so if your parents have money, odds are, they don’t really see the need to spend it. Also, in my experience, the purpose of money is to change lives. A couple hundred $k is enough to sidestep either a serious life reversal or invest into something truly good like starting your own business or get an advanced degree. Your parents are likely to be too old to benefit from that sort of thing, but kids and grandkids? Someone will have a need.
My son needed a special school out of the blue in 2020. It was $70k / year for 3 years. I paid it. He went from Ds/Fs to A/A+ and will soon go off to college. I don’t think that would have happened in the public school. He needed more individual attention that that 2500 kid school could provide.
Guess they just hate their kids? I really don't know why they wouldn't want to help them in life. Not saying they need to give it all to them but come on. You decided to have kids, help them out when you can.
My aunt passed and I inherited some of her portfolio and cash savings, I’m 28 with about 400k cash in savings and as usual everybody’s preaching invest, so what stocks are a good long term buy, only major purchase I intend to make is buying a home in 5years from my returns
Lucky you, I’d buy a lot of tech stocks and Dividend portfolios with that.
Don’t come to TH-cam looking for TH-cam advise, instead contact a fiduciary for proper guidance.
Same, I just use TH-cam for research purposes, I run all my major investment through an investment adviser, the market is just too unstable to handle things on your own.
How do I reach out to a financal advsor? my portfolio has been struggling since 2022 and I’ve been holding on by the skin of my teeth.
Monica Mary Strigle is her name, search about-her, you’d find details if you wish to reach out her. pretty awesome.
This topic is why multigenerational living is important and necessary! Growing up with greats and grands you get a perspective that is unmatched. You will learn the true growth from geneeagion to generation and if you are a person of character and integrity you want to continue that forward ans not allow provress to be stalled or wasted with entitled behaviors. Generational wealth needs generational family teaching each other or it is a blip.
I never put this into words, but yes! I wholeheartedly agree with you! ❤
I grew up watching my grands, greats, and a great-great. They were all adults during the Great Depression. The deep impression left on my siblings and cousins has mostly been permanent throughout our lives. I'm so very grateful to be born into such a rich and beautiful family, allbeit, each household might appear quite poor in today's age. In actuality, they lived with great sacrifice, worked hard, met their needs, and saved! 😍
I grew up close to my grandparents, and I learned those lessons from their having lived through the Great Depression. It’s not necessary for families to live together, but it’s really not good for kids to grow up without extended family in their lives. My grandma taught us good manners that have mostly disappeared from society.
@@genxx2724 I couldn't agree with you more, Genxx! It's wonderful to hear. 🥰💯
Live to give! I will keep this as one of my mantra! Brilliant Rachel 👌
Charity begins at home......so they say. So you can give all you want to others, but if you're not extending that to your own kids first, then who do you expect to give to them?
Wow!! This was deep. Thank you so much for posting this.
Please read his quote. He said they need to earn it by getting 2 degrees..
Who do you expect to give to them? I wouldn't expect anyone to give to them--they should earn the money themselves.
@@seawlf777 lol
My mother was a librarian and my parents divorced when I was in my late teens. She was a child of The Great Depression and very thrifty. She knew she couldn’t depend on her income/retirement and so converted the family home into a boarding house. Her parents left her the farm that allowed her and her sister to buy a couple of very small homes that they rented out. When she passed at 93, her estate was worth over $1 million. Her inheritance allowed her to live a stable retirement. My siblings and I don’t ‘need’ her money, but it sure was nice to have excess funds for my son’s college tuition. I think the most important thing is to teach your children to work hard and be independent.
But working hard doesn't always pay you well. I think with each generation life is getting harder. My uncle told me that he was able to work and go to college and pay 100 of it with working. He worked for a college education and was well rewarded with it. owned and operated three business. My dad on the other hand inherited the small family farm. He worked hard every day Sunrise to sunset, not a day off. It did not pay well at all. We lived at the poverty level. We never went hungry, both my parents knew how to garden and preserve food. We had a large garden and orchards that fed us year around. Both my Dad and Uncle were born during the great depression.
@@lindakincaid4530 There are no guarantees in life, but working hard and getting a good education will give you a statistical advantage.
Being an estate planning attorney, I deal with people of this mindset occasionally. Of course, your kids aren't entitled to a penny. However, given the uncertainties of the future and everything outside our control that can go wrong in life, I find the, "I started from nothing and made it" attitude to be short-sighted. There is plenty you can do in your estate plan to incentivize your kids and prevent them from being loafers without disinheriting them.
I'm not a big T.D. Jakes guy, but he's right when he says, "What you leave to them is far less important than what you leave in them."
My problem is not that my parents will leave me nothing if they were broke, it is there money. It is that my parents were left huge $$$$$ from there parents and majorly benefited from inheritance, but my parents have said they are leaving everything to the SPCA because that is what they want. Just seems hypocritical.
Why though? It was given to THEM so it is theirs to give as they see fit.
Boomers don't have a concept of wealth outside of themselves. My mother made me buy the house from her that she inherited. After that, I told her that she better spend any money she has because I will burn it if she leaves it to me. If I'm only good enough to receive your money after you die, then I refuse to accept it.
I agree with @someoneelse6934. It is THEIR money, so they can do whatever they want with it. Too many kids think they are entitled to anything their parents have. Whether the parents earned it, or inherited does not change the fact that it is their money. It is the parents' decision to do what they want with their money.
If their kids have a loving and respectful relationship with their parents and participate/interact in their lives, it is more likely they will get an inheritance when the parents pass away. If their kids are rotten to the parents and never see them, why would parents want their kids to inherit their assets when they pass away? It just depends on the situation.
@@RS-lw9cd I can definitely see genericwatcher2439's point - though. Parents who benefitted greatly by a generous undeserved gift from their parents did not see fit to do the same to their own children. I wonder why. Probably more to the story. Maybe the parents aren't really very loving.
My mother single-raised me and my other 3 siblings, we are used to not having any money to buy food/water/gas/electricity, even money for going to school.
She cut me off completely after high school, but since she has mentioned cutting everyone off years before; 2 of us managed to get scholarships to top universities local & international, 1 of us pay through working, 1 is however failing and still hasn’t receive diploma in 6 years.
I can agree with Rachel on moderation, going extreme leaves someone behind, or few with mental damage 🎉
Yes! I have learning difficulties. I am successful in life in a way but I needed help.
Very important topic. Great content as always from Ramsey. Just because a wealthy person doesn’t leave money directly from their “estate” it doesn’t mean the kids aren’t getting millions in some other form. Charitable remainder trusts and other types, life insurance and other highly creative legal avenues to minimize taxes on estate transfer are available to the wealthy as they have the money to hire top estate planning experts.
Giving all of one’s money away to charity and having that trust pay for a 100 million dollar life insurance policy to benefit one’s kids gains them the claim of I’m giving all of my money to charity and not my kids. Yet indirectly the kids get tax free inherited wealth. I’m not an expert but there’s many avenues available to someone who has the means to hire the best experts.
😢😢my 1st husband was taught that if he saved money, he was expected to use it on things he needed later. But if he hid the money or spent it, they would step in and take care of it. It ruined him.
What a foolish thing to teach your children. 😢
Excellent information that every parent should think about.
I have done things like college prepaid, a life insurance policy, opened investments. This over time will be a god sent for a child to have in adulthood. It’s also expected and I teach them to do this on their own to continue building that wealth. Whatever I have left in my later years is theirs when they don’t need it and they can continue to do for their children and teach. Generational wealth and knowledge to build is priceless.
Your dad raised a good woman. I appreciate people who want to help others. Keep doing the lords work.
My thought has been to put my money in a trust fund. When each kid turns 52 yrs they will be granted up to three times their net worth at that time. This will encourage them to work and build personal wealth but then may allow them to retire early and enjoy their maturing years.
I want my kids to have my money and they know it. My oldest son is the executor of my estate. They can have some now, too!
Congrats for being normal!
Seek first the kingdom of God and all these things will be added to you. That is a Bible verse that I strongly believe it. When is parental 'help' not help? When the children learn to rely on parents rather than God. Eventually, those kids will think they don't need God at all and turn away from Him. What an eternal disaster that could be! It is definitely okay to gift children with some money or other items, but time, attention, discipline, etc. should never be replaced by money.
I dont want anything from my parents, I just want them to enjoy and be happy during their golden years. They prepared me well to confront life and make my own wealth.
I think as in most things in life balance is the key. I think of the inheritance I leave my kids as a safety net. I will tell them there is little or nothing for them to ensure they know they have stand alone, but in reality, there will be a safety net always for them if needed, wether I have passed on or not.
I love this conversation! Would love to hear more about this from Dave’s POV as well
My wife and I started with nothing. We were both dirt poor. Really dirt poor. We have managed to excel and save and were quite generous to our children growing up. Sent them to college, took them traveling around the country and the world. Over the years we have managed to save for retirement and now are millionaires. My intention is to spend every cent on my wife and I. I raised my children and set them up to forge there own path to success. My obligation is done. Now my grand kids are another issue....
I think that it's a great idea. I like the principles. It's not that you don't leave nothing. It's how you do it.
Guy doesn't need to pass down a handful of money to his kids to pass down his amazing legacy as a chef. I love guy ❤
It’s important for parents to responsibly provide with expectations of their kids achieving accomplishments. And providing is healthiest when it’s contingent on children achieving and pushing themselves. This is the healthiest approach. Assist and expect. This balances trust in the world when you push yourself. Unhealthy entitlement is avoided, yet trust in oneself and the world is developed.
Parents declare they won’t leave money to make sure kids are not lazy and develop the right attitude to living life and working hard but when they die I’m sure most parents leave their kids money. The rich Almost always think about and plan for generational wealth and establishing a legacy that will be remembered and celebrated in the succeeding generations.
I remember it said that JD Rockefeller only gave each son 1 million dollars at 21 years of age and swore to never give another penny after that to allow them to start their own businesses, One started a major West Coast Bank, and an a San Francisco newspaper!!!!!!!
I am living frugally in retirement to give my kids as much as possible. I love them dearly and want them to have the security I didn’t. I’m also training them on how to invest, how to manage money, and how not to waste it.
Inheritance is a very personal thing. There is no right answer for everyone. I say if it's yours, live as well as you can. Don't worry about leaving money for anyone.
I love what your dad says: match what they save for their first car, their down payment on a house, etc. etc. it rewards work, frugality, saving, etc. and takes the scary part out of growing up
Some years ago a book came out called the millionaire next door, the author identified the same disincentive for children with an expectation and what he called economic outpatient care as we see with welfare recipients. Every time you give or promise you extinguish some fire in your children. Make sure they think your broke, unless they are involved in your business and have earned the right to know. Better to eave funds for their children's education only but by all means help out but make it a surprise not an expectation, do a search and pay down their mortgage but only after they've qualified and been paying for it on their own for some time. By paying direct to there mortgage for example you prevent them from wasting the gift, most won't even notice that the balance has dropped.
Awesomes topic and Awesomes presentation. BUT I do have one criticism. IMHO a parent can't "give" a person dignity. A parent, more than anyone else, can instill morality and ethics into a person's mindset, but dignity (again in IMHO) must be earned within one's own heart.
I love watching you and everything you, and your family, is "preaching"! VERY positive!
Thank you.
I grew up with my parents struggling with money, even homeless at one point. Now my parents are billionaires and I feel gross that they are planning to give me and my siblings an inheritance. Seeing my parents go from homeless to Billionaires makes me feel like I need to do the same and the idea of benefitting from their struggle and now thriving feels wrong to me. Idk what the right answer is, but it is a weird kind of tough.
What fun food for thought. I actively see the consequences of adult children becoming “waiters” waiting for parents to pass on. I know what starting with zero equates.
In theory giving money before your death is wonderful! I could also see a benefit to matching 1x or 2x whats in an adult childs 401k or saving account at the time of inheritance. However to word it so it can’t be taken advantage of.
Thanks for sharing Rachel!
This was such a helpful video. Thank you!
It's a harsh. cruel world out there. My kids and grandkids would get EVERYTHING.
Again…Shaq is the King.
Best idea I’ve ever heard. It’s here. Be useful. Be productive. Be ambitious. You be rich.
They’ll all make it on their own. Teaching them how to earn things is huge
Teaching contentment...I like that.
I had a friend in high school. I didn't realize how well off his parents were. Sadly they both died young, and he and his siblings were left millions. It ruined his life. He drifted from one venture to another. But it didn't matter whether they worked or not, so he never really tried to make them work and just threw money away. At least he didn't get into drugs or anything like that. But he's in his 60's now and really hasn't done anything rewarding or worthwhile his whole life.
According to whom ?
@@joemarc62 According to him. He's pretty bitter about his past decisions. And fwiw I'd pretty much have to agree with him.
@@xlerb2286 Got it, thanks.
Ultimately the question is what is the appropriate level of deprivation? Make it hard enough that they have to work and be intentional but not so hard that they lose everything.
My great great grandmother was at my 13th birthday party at the age of 106.
I keep that in mind when preparing my future estate because my kids will likely be post retirement, so they get a decent piece of the pie but an equal piece is divided amongst grandkids great grandkids and great great should they be born before I die.
If my descendants follow good money principles my great great grandchildren could be billionaires in their old age.
I definitely leaving kids money, i don't vwant them to struggle and stress like i did
My wife and I paid our own ways through college. But we also house hacked and moved my grandpa in with us so we could move out of our starter home into a bigger house to start having kids.
We will fully fund our kids' college education. I want to set them up right. I want to feel great full for that and pass that on to there kids. I want to help my grandkids when the day comes with ther house down-payment. I want every generation helping the next so we can establish a dynasty. Sure some kids won't make it. The weak will parish
The trick is to raise children and make sure they understand that what they get is GENERATIONAL WEALTH and while they get to enjoy the fruits of the money they have an obligation to pass it on to other members of the family. I have received the fruits of the fourth generation and have the obligation to pass it on. So do they have that same obligation.
I was left with a decent amount of money from my Grandfather, and I unfortunately blew through it way too quickly...
Giving your kids millions of dollars while they are young is pretty likely to mess them up and make them targets for grifters. Helping them get an education and a start on something like a down payment on a house can set them up for success in their own lives. As self-made millionaires, people like Fieri probably don’t see starting from modest means as a disadvantage for their kids.
It has to be a balance in my opinion.
Children need to be taught how to work and earn their money. They need to be taught how to manage their money. I learned these lessons the hard way. Grew up poor and never learned to manage the money I earned. All my money growing up paid for my basic needs and helping my parents bills. As an adult, I got into debt and had to file bankruptcy. Now I won't have any type of credit. If I can't pay cash for it, I don't buy it.
Who said any of them are going to wait until they are dead? They start a business with them and invest assets in the business. Adult child has years to grow the business venture and become self sufficient from the parent's seed money.
i don't need money....I just want to have freedom to do whatever i want to do ...
If you want to set kids up for success, make sure they have responsibilities within the household such as laundry, dishes, cooking, mowing lawn, changing tires and oil, everyday life skills. Have them mow neighbors lawns or walk dogs to earn money and teach them to save. Why pay someone when you can do it yourself. Leaving kids money most times does more harm than good.
A lot of times people, with lots of money put money in. So their children have access to the trust, but technically they aren't leaving the money to their children. They might leave them a little bit to make it more realistic, but ultimately, all of the money is going to.
I’m planning on passing on a trust fund to my descendants with strict limitations on how it’s withdrawn from so it will grow in perpetuity and never run out.
I don’t know if it is a right answer, but we funded their 529, then I started a company so I could fund their 401k through profit sharing. After that, our focus will switch to grandkids.
I’m not in my dad’s will. He is giving everything he has to forward the message of salvation and I’m not mad about that. I’m fine and if more people are ready for Jesus’ return, makes much more sense. The sooner we can get out of here the better.
I think it depends on the kids. You want any gift for your kids to help them in life. Sometimes, millions of dollars isn't what somebody needs. I plan on helping my kids throughout their lives instead of leaving them a big lump sum. I also plan on helping my grandkids, funding their 529s, etc.
I can see if the child is not responsible vs responsible is how have to look into this. Money can be stressful if get too much and don’t know how to handle. I do think though parents should understand their child at all stages of life to help grow and learn based on the path they are on. If right education and steps are done in developmental years that will make them more successful.
Bill Gates is certainly giving a lot of money, it just doesn't necessarily feel like it's "giving back" with all his weird farm stuff!
I felt really blessed my parents gifted me a $7,000 car when I graduated from college and got into law school. My grandpa left me an inheritance to attend uni debt free but I did take out student loans to go to law school (tho chose in state and one of the most affordable law schools in the country).
For the kids in my family I like contributing to a college and/or first home fund and I also think having a matching requirement meets them in the middle. It incentivized them to work and save to meet the gift match so you’re not just giving to a kid who is unappreciative or lazy, but helps out tremendously with those first life stages in the 20s which are the hardest hurdles to leap over. I’m 31 now, a lawyer, married, and we own a house 😮💨 I also thank my parents for paying for our wedding. We kept it as affordable as possible while being very lovely and having 100 guests. That was just really wonderful and I know my mom appreciated gifting it bc she wasn’t able to have a big / nice dream wedding when she was broke and I was a baby when my parents got married.
I think that the expectation of inheritance weakens people.
I just did a google search on Guy F. Found out he has a BA degree in Hotel Management. He doesn't have two graduate degrees..... hmmmm.
If you want your bloodline and family tree to suceed, you have to take good care of it, if not, it may not survive. It's your choice.
At the end of the day, it is his money. If he wants to leave it all to Save The Snails, so be it. You are not entitled to anything, just because you are his child. If you hold a grudge because he left you nothing, that is your problem, not his.
I think many celebrities become stingy when it comes to their finances. I'm glad Dave isn't that way and neither are his children.
My grandpa is 90 and has a house payment. Parents are poor and used up their retirement. I ain't getting anything
Not nothing. Free college and even private school is pretty awesome. Step up in the world. Money for martial arts, sports, art classes. Language classes. Computer science classes. Anything they want to learn. That’s huge.
And I’d trade what I got for my mom back any day.
I just gave my son $53,200 for a downpayment on his home. He has twin boys that he is raising alone with my help. He currently lives in a duplex that he will rent out when he buys a home. For the most part he is very frugal. He needed the help now not in 20 years when I’m dead.
Amen that’s the way to do it.
“I’ll be your safety net but i wont walk the wire for you.”
AJ
At least they have the decency to tell their kids upfront that they get nothing.
I think the most valuable thing you can "leave" your kids is to teach them from an early age how to handle finances well. **Model it for them.** Then they can make and grow their own money and you can leave your money to your favourite charities.
My parents started from nothing. They got nothing from their parents. I got nothing and worked hard to get to where I am. I'm going to live large and I'm going to spend my last quarter in the hospital in the vending machine before I die. My kids are learning hard work.
No free lunch.
Kevin O'Leary says that after the kids are done school, they are on their own. No more money.
I don't buy it. Celebrities HAVE to say that publicly. But in reality, they are way too vain to not want to leave a legacy or generational wealth for their families.
I'm worth about $5 and can't afford to go to McDonald's, but glad to know that there's millionaires out there! 😅
I always told my parents they should spend their inheritance on themselves.. They earned it... Although that was more of a joke between us...
It's always been important to them to know that they are going to leave something behind to us kids...
Could my parents (my dad passed last year) have spent more enjoying somethings? Yeah.
But I don't think he had any major regrets in that area, and that's really what it's all about.
I kind of wish my mom got out and travelled a bit. She can't now, but I think she would have enjoyed it when she could of...
But family has always been more important to her than travel, so it's a choice she has made happily.
I don't think that is something she would change, even if she could...
$100 million and he can’t come up with a few thousand dollars to pay for his own funeral. That’s a punk move if my father said that they could just feed them to the dogs.
Sitting here watching & thinking, I would love to be a fly on the wall at a Ramsey family dinner.
I find this so incredibly manipulative.
These parents want to control their kids' behaviour even beyond the grave.
If they are afraid of the child frittering it all away, or falling prey to a gold digging partner, put part or all of it into a trust fund, with regular monthly payments for life.
And as for them maybe turning out to be lazy: so what if they are?
100 million is enough to keep multiple generations set up for life.
He didn't say he's not leaving them anything. Based on the quote she posted he said they need to get 2 degrees before they get it.
Where exactly did you read that? Do you know any semantics?
Let me rephrase so you get it better: I'm not planning to leave them anything. I want them to have minimum 2 degrees so they can do well in life on their own!!!
"Oh how blessed the young men are who have to struggle for a foundation and beginning in life; Struggle is the crucible of character"-John D Rockefeller
"A very rich person should leave their kids enough to do anything, but not enough to do nothing" - Warren Buffett
I think that line is paying for college. Having college paid for, you are giving your children the opportunity to do anything, but not so much that they do nothing. If you buy them a house I think that goes too far- you'd be (at best) robbing them of any opportunity to build character; and (at worst) your children may never face any sort of failure/adversity until much later in life- and they might start to believe they can do no wrong. Many CEOs and Owners have failed in business & life that way.
I agree with your advice however people need to keep in mind that the dollar is fiat and is quickly losing value. For example, in 1954, my parents paid approx. $12,000 for their home in California. A year ago my daughter paid $12,000 for a used Honda Accord with over $100,000 miles on it. Years ago it was not a stretch for the average family to own a home. Today many average wage earners struggle to own a car and pay rent. A home is out of the question in 2024 unless it's in a city like Mangum OK.
It’s not the dollar to blame. If the value of the dollar goes down it is a mistake to think you can only save wealth in dollars, or your salary can not go up to compensate. You are barking up the wrong tree.
There are two real issues leading to housing unaffordability. First, our country has been building only about 60% of the homes it needed to for the last few decades. There is simply an acute shortage of houses to go around so that drives up the price of housing so that not everyone can have one, simply because not everyone can have one. (This is the natural consequence of underinvestment and the law of supply and demand.) There aren’t enough houses to go around for the number of people we have in the US. Talk to a builder about why he isn’t building like gang busters in the face of record high home prices.
The other problem is that wages have remained stagnant (corrected for inflation) since about 1978, while GDP continued to rise. The missing profits went to wealthy people, many of whom invested in multifamily dwellings so they could make passive income from your housing shortage. What happened in 1978? Corporate boardrooms were forcibly converted from stakeholder primacy to shareholder primacy by a spate of activity investors and hostile takeover. The common man isn’t going to see much from our national prosperity as long as corporate governance philosophy says everything belongs to and goes to the shareholder. What national prosperty? We have tremendous national prosperity! It is the envy of the world! (See US stock market performance vs world since 1978.) You just can’t tell, because it has been stolen from you and most everyone else since 1978. The rich poor gap ain’t increasing for nothing.
@@ianollmann9393 IF the value of the dollar goes down? look at any legitimate chart indicating the buying power of the dollar and it's clear in more recent history that it has been on a steady decline since 1934. Unfortunately, salaries have not kept up. For example, in 1973 I was in my early 20s and bought my first home in California for $21,950. In 2024 Zillow has its value estimated at $721,700. That's 32.88 times what I paid for it. In my 20s I earned $1,200 per month. Today, people with the job I had back then earn on average $5,000 per month. My first home went up in value 32.88 times. Multiply 32.88 by my 1970s salary and that comes to $39, 456 per month salary! The job I had doesn't pay anywhere near that today.
@@ianollmann9393 My previous reply was removed for whatever reason. The short version is you are wrong about several things. Since discussion is not permitted here, I won't bother spending much time. The dollar became fiat after Nixon took us off the gold standard in the early 70s. Fiat currencies always die and the dollar is well on its way.
My parents helped me grad college debt free. I always told them that they were not my retirement plan. So even though there was $$$, my mom didnt leave me anything. My dad remarried and she spent him into a hole. So i did get $ which is enough to help with my kids college. But thats it, and i didnt expect it and u am grateful for it. I tell my kid, you make yourself. We will get him thru college, and there may be some $ for him. But i dont want him to count on it.
Unfortunately, I think that we now think very short term of ourselves and our families. If you go back a century or two everyone that had any generational wealth seemed very intent on who would become the new patriarch of the family. Usually this would go to the eldest son or at the very least the child with the greatest potential for success with it. I don't think this is necessarily right and it is sad to compete siblings against each other, but I there is an inherent logic to inheritance. I mean if you have a child that is a Holly Golightly and a child that is an investment banker it is probably better that you leave any left over wealth with them the later rather than the former. Wealth also should accumulate rather than diminish if properly diversified strategic investments are made. Maybe the best method is to pay for your kids education then select inheritance based on how far they go with that education. I mean an interpretive dance degree never saved anyone's family from starvation.
Great episode Rachel. I appreciate your thoughtful position!! Thank you for sharing! God Bless You and Happy Resurrection Sunday!
I think that the parents want their children to do something in life and if you are wanting to teach them something’s these wealthy people better contribute their money to helping society in some way is another reason they want to make a lot of money otherwise what’s the point in keeping it all for yourself…making that much?
People are living so much longer. And advanced care costs so much money. And your kids will be so old by the time you die. Help them now. Pay for college. Buy a used car for them. Let them live rent free while saving fora down payment on a house, or help them with down payment. They need the help the most in their 20s, not their 60s
If I'm not mistaken, Shaq is also requiring his kids to have two degrees if they want to do anything with his money.