The Top 10 Best Practices for Sharing Your Financial Values with Your Family

November 8, 2018

Open communication about wealth makes it easier to pass on your values to the next generation.

Why family governance should be a core goal for wealthy families

We believe that families who talk openly together about their wealth and share in decision-making can improve their ability to pass along their financial knowledge and skills to their children.

There’s a helpful process called family governance that helps this collaboration happen. It involves financial education, communication strategies and collaboration.

Family governance can take a different form for different families — but we believe there are best practices you should consider to help execute it effectively.

  1. Take part in a goal-setting exercise. We believe well-articulated intentions drive all aspects of financial and legacy plans and lead to the techniques you should use.
  2. Start young/start early. Most experts believe children can begin receiving financial education as early as age 6.
  3. Be proactive. Start the conversation.
  4. Communicate personal values. Talk about what you want your wealth to do and what expectations you have for your children.
  5. Use everyday, real-life moments to talk; this is often more effective than holding formal meetings.
  6. Don’t just talk; listen. Wealth conversations are a two-way street. There’s a difference between a lecture and a dialogue, and it’s important to help your children feel comfortable asking questions.
  7. Create a family mission and vision statement.
  8. Create a mentorship team made up of both family members and third-party advisors outside the family.
  9. Give children learning experiences. Similar to using everyday moments to foster communication, memorable experiences with a wealth lesson will be important.
  10. Don’t shy away from financial education. Use various resources, such as books, hands-on activities and technology. Your  family governance strategy is truly an investment in the next generation.
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Contact a member of the SEI Private Wealth Management team at 888-551-7872 to learn more.

Legal Note

SEI Private Wealth Management is an umbrella name for various life and wealth advisory services offered through SEI Investments Management Corporation (“SIMC”). This presentation is provided by SEI Investments Management Corporation (SIMC), a registered investment adviser and wholly owned subsidiary of SEI Investments Company. The material included herein is based on the views of SIMC. Statements that are not factual in nature, including opinions, projections and estimates, assume certain economic conditions and industry developments and constitute only current opinions that are subject to change without notice. Nothing herein is intended to be a forecast of future events, or a guarantee of future results. This presentation should not be relied upon by the reader as research or investment advice (unless SIMC has otherwise separately entered into a written agreement for the provision of investment advice).

Neither SEI nor its affiliates provide tax advice. IRS Circular 230 disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that any tax advice contained in this communication was not intended or written to be used, and cannot be used, for the purpose of (i) avoiding tax-related penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any matters addressed herein. You should seek advice based on your particular circumstances from an independent tax advisor. The information contained in this communication is not meant to substitute for a thorough estate planning and is not meant to be legal and/or estate advice. It is intended to provide you with a preliminary outline of your goals. Please consult your legal counsel for additional information. This is intended for educational purposes and not meant to be relied upon as investment advice.

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