Mel Abraham argues that teaching financial skills before handing down money is crucial. Roughly 70% of family wealth disappears by the second generation and over 90% by the third, mostly because heirs lack the knowledge to manage it. Skills like financial literacy and risk awareness are the real inheritance.
Never pass on assets before passing on skill sets. See, money without skill to hold on to it doesn't create legacy. It creates a countdown. Hand someone a windfall with no financial literacy, no sense of risk, no idea of how to manage what they've been given, and the money doesn't build a future. It just delays the moment they run out. The skill is what makes the money last, not the size of the check. See, 70% of family wealth is gone by the second generation, and over 90% by the third. That's not bad luck. That's assets handed down with no skill set attached. So before you pass on money, pass on skill to keep it, grow it, and use it well. That's the actual inheritance.
