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Why Transparency About Wealth is Crucial with Your Kids


Transcript

The wrong thing to do is to try and hide it or a lack of transparency, that that tends not to work out well. An example that I heard was one kid found out that their father was extremely wealthy because they read about the newspaper. Best case, oh money's something to be embarrassed about, you know, worst case, my dad's a liar and, you know, didn't tell me anything on this.

And so in reality, you know, your kids are smart. They're going to pick up things. They're going to understand how they stand. And so by not having a pretty significant degree of transparency in age appropriate open communication, it really just means that you're taking this topic that you probably think is important and just abdicating the ability to teach them about it or the responsibility to teach them about it because you're sort of pretending it doesn't exist, which, you know, maybe the best case in air quotes of what that looks like is when you pass away, they suddenly found out that they inherited hundreds of millions of dollars they didn't know existed.

That's not really a best case, but that's if you sort of managed to keep the secret the whole time, then otherwise they just, you're keeping secrets and you're not teaching.