What portion of wealth is claimed to be gone by the second generation?

Mel Abraham#1 Best Selling Author, Money Mentor

What Wealthy Families Teach Their Kids That Others Do Not

26 Dec 2025 · 1 min

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0:56

Short YouTube monologue by Mel Abraham arguing that assets should be passed on only after teaching the necessary financial skill sets; otherwise wealth is frequently squandered across generations. Cites a numeric claim that "by the second generation, 70% of the wealth is gone," lists concrete skill areas to teach (save, give, live, invest), and closes with a personal anecdote about his son (age 35), daughter-in-law (age 32), their two daughters, four homes, and a multi-million dollar net worth as evidence of the approach's success.

Questions this video answers

70% (speaker's claim: "by the second generation, 70% of the wealth is gone")}],

Chapters

I don't believe that you ever pass on the assets unless you pass on the skill sets first. Okay? Because if they don't have the skill sets to steward what you have built in your wealth, they're going to squander it. There is data out there that shows that by the second generation, 70% of the wealth is gone. Why? Because they transferred assets without the skill sets. Give your kids the skill sets they need to save, to give, to live, to invest, to live a financially independent life. So they learn control, they learn confidence, they learn choice. Then that allows us to raise a generation that doesn't chase money but creates meaning. Okay? I hope that this connected with you. I hope that this is meaningful for you and that you'll take it on and put this into your home, put this into your children's lives. Let me tell you the results. My son today is 35 years old. His wife is 32. They have two beautiful little girls and they have four homes and a multi million dollar net worth.