Raising Stewards, Not Spenders: Helping to Empower the Next Generation

As stewards of significant wealth, many of our clients ask: How should we talk to our kids about money? How do we help ensure they don’t squander what we leave them? How do we guide but not control their spending?

It’s tempting to focus on structures—trusts, foundations, investment strategies. But none of that matters if the next generation lacks the character, purpose, and maturity to use them sensibly.

Wealth without wisdom can quietly erode potential. Research shows that 70% of wealthy families lose their wealth by the second generation, and 90% lose it by the third.

When you pair wealth with intentional conversations and action, you raise stewards, not spenders.

Stewardship Begins at Home—with You

Affluent families often express love through provisions: comfort, opportunity, and access. But the next generation needs your presence more than your provisions. They need you as guides, not just providers.

Emotional warmth—not wealth—shapes long-term resilience and healthy self-worth. Studies confirm that parental affection influences a child’s development, which in turn shapes their relationships with money, responsibility, and risk.

Legacy lesson: You are the model. Your children will mirror your habits, anxieties, generosity, and approach to influence and power.

Model the Mindset You Want Them to Inherit

As wealth managers, we prepare assetsfor the next generation. Your role is to prepare the next generation for those assets.

Your kids notice more than you think. They compare vacations, second homes, and clothing brands with their friends or what they see online. They may even try to determine your net worth by asking questions like, “How much in dividends does this stock pay you?”

Children absorb:

• Is money treated as a tool or a scoreboard?
• How do you make decisions under pressure?
• Is generosity habitual or performative? Do you give out of care or for tax benefits?
• How do you handle setbacks?

Let them see how you budget, invest, give, and adapt. You don’t have to be perfect, but you do need to be authentic.

Legacy lesson: If your children inherited only your mindset and values—not your money—would they flourish?

Give Them Structure Before You Give Them Freedom

Freedom without preparation becomes a liability. Entitlement—believing wealth is owed, not earned—is one of the greatest risks to generational wealth.

Build structure for both young and adult children: chores, accountability, earned privileges, and limited access to capital. These create respect and discipline, traits that predict financial prudence and stability.

Legacy lesson: Let them control their decisions while you guide from the sidelines. Don’t give them enough matches to burn down the house, but allow small mistakes. Controlled struggle builds resilience and responsibility.

Teach Them That Wealth Has Purpose

Our world often equates net worth with self-worth. The next generation needs clarity: What is wealth for?

Affluence should amplify values, not replace them. Ask whether you are teaching them to:

• Fund causes that matter.
• Support family with humility.
• Invest in purpose-driven businesses.
• Live below their means, even when they don’t have to.

Purpose grounds wealth. Without it, even the most sophisticated planning becomes a burden rather than a blessing.

Legacy lesson: What story do you want your wealth to tell after you’re gone?

Redefine Legacy as Leadership, Not Just Inheritance

Your children are not just heirs. They are future leaders—of families, businesses, communities, and institutions. If you treat them only as recipients, you rob them of the chance to grow into stewards.

Legacy isn’t just what you leave—it’s who you raise.

Legacy lesson: Invite them into real conversations about wealth, ethics, investing, setbacks, and giving. Let them practice leadership with mentorship, not micromanagement.

Caring Is the First Investment

Money is easy to transfer. Values are not.

If you want to raise wise, grounded stewards of wealth, start with care, structure, and example. These are the assets that compound across generations. Build more than a portfolio.

Legacy is not what we leave behind—it’s who you launch forward.

Chase A. Hutter Financial Advisor CFP®

Chase has been involved in the financial services industry since 2014. He earned a bachelor’s degree in finance with a minor in pre-law and history from Southern Illinois University-Edwardsville.