I remember a saying which was around decades before I was born, something like;Grandfather wealthy, son playboy, grandson pauper.
On the flip side: from my experience and talking to my colleagues, it is those from wealthy families who grew up familiar with concepts of investing, compounding, diversifying, not seeing the sharemarket as gambling etc etc. Largely, most Kiwis are financially illiterate, hence the preoccupation with property, bricks and mortar, and distrust of the sharemarket even though it has outperformed property over time. I am very glad to have left NZ and became exposed to a more financially aware culture, and fervently wish our education system placed more emphisis on basic fincial literacy.But the study mentioned regarding the generations following wealth creation ignores the fact that often wealth is created with risk via debt. Leveraging increases gains but also increases losses. If the emphasis is always on more, more, more and taking risks to increase wealth rather than simply consolidating then of course sooner or later the risk is NOT going to pay off...it is not simply about waistrels spending Pops money.
I remember a saying which was around decades before I was born, something like;Grandfather wealthy, son playboy, grandson pauper.
On the flip side: from my experience and talking to my colleagues, it is those from wealthy families who grew up familiar with concepts of investing, compounding, diversifying, not seeing the sharemarket as gambling etc etc. Largely, most Kiwis are financially illiterate, hence the preoccupation with property, bricks and mortar, and distrust of the sharemarket even though it has outperformed property over time. I am very glad to have left NZ and became exposed to a more financially aware culture, and fervently wish our education system placed more emphisis on basic fincial literacy.But the study mentioned regarding the generations following wealth creation ignores the fact that often wealth is created with risk via debt. Leveraging increases gains but also increases losses. If the emphasis is always on more, more, more and taking risks to increase wealth rather than simply consolidating then of course sooner or later the risk is NOT going to pay off...it is not simply about waistrels spending Pops money.