7 money afflictions from inherited wealth

Ignorance: Does this inheritance mean I'm rich?
Ignorance: Does this inheritance mean I'm rich? © Goodluz/

Younger inheritors are especially susceptible to lack of understanding about how much money is a lot, versus how much is enough to live modestly, says Jason Flurry, president of Legacy Partners Financial Group in Woodstock, Ga. "They don't have a concept of how far the money can go," he adds, often leading to expensive purchases such as boats or homes that require ongoing maintenance and tax payments that can erode an inheritance fast.

The solution is preparation. "I think it's really important, in an age-appropriate way, to prepare children for the possibility of inheritance," says Madeline Levine, psychologist in Marin County in California and author of "The Price of Privilege" and "Teach Your Children Well."

"They don't have to know the exact amount, but most kids know if they come from wealth," she says. "The awareness needs to start at a young age -- 8, 9, 10 -- somewhere in there."


Show Bankrate's community sharing policy
          Connect with us

Learn the latest trends that will help grow your portfolio, plus tips on investing strategies. Delivered weekly.

Ask Dr. Don

Cash in childhood savings bonds?

Dear Dr. Don, I have three $50 Series EE savings bonds issued to me (at my childhood address) back in June 1986. They were academic awards in grade school. I have no idea what to do with them. How do I redeem them? I tried... Read more

Partner Center

Connect with us