Many families do a poor job of teaching their children about money and wealth. For the future of a family business, this can be devastating.

Money and wealth are not the same. Money is a medium of exchange. It’s about transactions, and is used for taking care of our needs. Wealth, on the other hand, is the net accumulation or abundance of assets. In some ways, money is about today, and wealth is about the future. Understanding both enables successful multi-generational sustainability.

It is important to help your children understand this distinction so they can develop attitudes toward money and their family’s wealth that are realistic and constructive.