Generational wealth and why it's so hard to maintain

[Fedorgasm]

Here's the cycle that I'm worried about.

1. I grew up poor. It made a me strong. So I bust my ass at work and make smart financial decisions so my kids don't have to struggle like I did.

2. As a result, my kids have a comfortable upbringing. Despite me teaching them a work ethic, it's not quite as effective as growing up poor. As a result, they are weaker. Less resilient. And they grow up to be less successful. Although I don't allow them to fall into poverty because they're my kids. So I help them out financially.

3. Their kids are even less successful, because they grew up semi-comfortable, and my kids were not equipped to instill a good work ethic into them, since they never experience struggles first-hand. They grow up to be poor. I'm probably dead by this point so I can't help prevent it.

4. Their kids grow up poor. It makes them strong. So they learn to bust their ass and make smart financial decisions so their kids don't have to struggle.

And the cycle just repeats.

 

[Pliny Pete]

Thats why I just stayed poor, dont gotta deal with all that bullshit

 

[KreamPuff]

Be like the Asian tiger parents and brow beat it into them that financial success is the expectation

 

[Threetrees]

If you’re rich and your kids lose the wealth you leave them you’re just a shitty parent

plenty of rich kids stay rich.

 

[Cole train]

Dont have kids and spend all on hookers and cocaine

 

[kahiljabroni]

I think your kids will actually do better than you. They'll have just enough comfort and guidance where they will have the opportunity to meet their full potential.

 

[djacobox372]

I don't think TS understands what generational wealth is.

Generational wealth is wealth such that you can setup trust funds for all your kids and all your grandchildren so they can live wealthy their entire lives without having to do anything themselves.

For this you'd need about 20 million dollars for two kids and their offspring--assuming the markets stay good and the trusts can grow before the grandkids get at it.

 

[RoastBeast]

Dont have kids and spend all on hookers and cocaine

I was gonna say, then who's going to take care of you once you get old?

But yeah I guess hookers and cocaine.

 

[gspieler]

Seems like basically the Econ 101 way of saying “hard times create strong men…”, etc.

 

[Jesus X]

Thats why I just stayed poor, dont gotta deal with all that bullshit

 

[Jesus X]

Generational wealth and nepotism actually does make some people richer just look at donald trump and elon musk also like 99 percent of hollywood and corporate executives.

 

[Richmma80]

It's genetic. Your kids may not inherit your hoarding genes

 

[Rob Battisti]

I had more financial wealth at 25 than my parents did who died at 48.

I hope that my son can beat me as well.

That should be everyone’s goal.

 

[BlankaPresident]

This again?

 

[Ponchik]

I'm so worried about my kids being ruined by money, that I don't even try to obtain it.

 

[burningspear]

whats to be will be

 

[YEET]

I believe the saying the rich get richer. If they don’t take advantage of the head start then it’s their fault. After I kill over it’s definitely not my problem either.

 

[ChickenBrother]

Here's the cycle that I'm worried about.

1. I grew up poor. It made a me strong. So I bust my ass at work and make smart financial decisions so my kids don't have to struggle like I did.

2. As a result, my kids have a comfortable upbringing. Despite me teaching them a work ethic, it's not quite as effective as growing up poor. As a result, they are weaker. Less resilient. And they grow up to be less successful. Although I don't allow them to fall into poverty because they're my kids. So I help them out financially.

3. Their kids are even less successful, because they grew up semi-comfortable, and my kids were not equipped to instill a good work ethic into them, since they never experience struggles first-hand. They grow up to be poor. I'm probably dead by this point so I can't help prevent it.

4. Their kids grow up poor. It makes them strong. So they learn to bust their ass and make smart financial decisions so their kids don't have to struggle.

And the cycle just repeats.

I have the same concerns. My wife and I grew up in lower or lower-middle class neighborhoods and now, through our hard work, are raising our kids in more comfortable conditions.

I think 1 and 2 are valid. That's usually the way it goes. But 3 and 4 are not very likely barring very poor parenting. The system in the U.S. is designed to perpetuate a middle class, and middle class (or higher) neighborhoods and schools means your kids are surrounded by kids whose parents are gainfully employed in legit jobs - and they will learn those habits as much from them as from you.

I can think of many examples of kids less successful than their upper-middle or upper class parents, but their floor is still higher than for kids who grew up in abject poverty. Because they have the benefit of having attended decent schools, socializing with productive families, etc., even if they're lazy slackers their worst case outcome is a shitty dead end job in an office environment, topping out at middle manager in their 40's but making enough to afford a decent middle class lifestyle. If they're smart and hard-working, they're likely to do as well or better than their parents.

But kids who grew up in poverty have it rougher. They have fewer upward opportunities and they don't even grow up knowing how to act around "regular" people. If you grow up surrounded by druggies, gangsters and welfare cases, that's your baseline even if you don't become one yourself.

 

[Sirwastealot]

It is a dilemma. Its that saying:

"Hard times create strong men, strong men create good times, good times create weak men, and weak men create hard times."

A lot of people take this to mean you should go through hard times to become stronger so you can create good times. But that would eventually result in creating a lot more weak men.. and so on.

I think the best thing to do is spend all my wealth for myself and let my family struggle as they would if we were poor. I'm willing to make this sacrifice for the good of humanity.

 

[Otto!]

Thats why I just stayed poor, dont gotta deal with all that bullshit

So, the kid wins again?