MARK KOHLERMain Street Professionals, Main Street Professionals, Main Street Professionals, Main Street Professionals, Main Street Professionals, LLC · Owner at Main Street Professionals, LLC

Why Giving Kids Money Too Early Fails

22 Jan 2026 · 1 min

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In this segment, Mark Kohler argues that giving a large inheritance to a 25‑year‑old is likely to lead to wasteful spending because most young adults lack the financial maturity to manage substantial sums responsibly. He proposes a staged distribution model—one‑third of the inheritance at age 25, another third at age 30, and the final third at age 35—so that beneficiaries gradually develop financial discipline. Kohler also suggests using trust‑based matching funds to encourage children to pursue lower‑paying, altruistic or passion‑driven careers, offsetting the income gap without forcing them to chase high salaries. Finally, he notes that trusts can be structured to release money for specific milestones such as education expenses or home purchases, providing controlled support that helps children grow financially rather than receiving a single, unrestricted payout.

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When I was age 25, if I would have received a big inheritance, I would have blown it. I wouldn't be here today. And a lot of kids at age 25 aren't ready to receive a lot of money without some support and strings and control mechanisms. So at age 25, they get a third. They might blow it. They get another third at age 30. Boy, they're going to be a lot smarter about that money, but maybe not have the greatest success. But at age 35, when they get the rest, they're going to treat that very, very differently. Another idea is matching income distributions based on reward or hard work. For example, if you want a child to go into maybe a liberal arts degree or some sort of career that maybe doesn't pay as much, they can get matching funds from a trust to help them do something that might be more altruistic or fulfilling for them. And they don't have to chase the dollar to do something they're passionate about. A trust can also release funds for education and home purchases, like I said, and help the children grow and evolve with their finances with the help of the trust, not just waiting for the big payout.