What is Fair?

I bring this up is because of a recent action taken by a local school district which bothers me.

In high schools around the country, administrators plan early for their upcoming school year. During the summer they are already planning for the next years curriculum and end of year graduation ceremonies.  These ceremonies are a special and final opportunity to recognize students for completing their high school requirements and for excelling in academics, sports, extracurricular activities and other non-academic areas of high school life.  Specifically, colored cords and stoles are worn by those who have excelled in various subjects, sports, and activities. These cords and stoles are proud external representation of accomplishments to many parents, teachers, administrators and students.

A school district near me has decided that special recognition is not inclusive.  Yes, we knew that.  This particular school district sent an email to parents letting them know that next year there will be no recognition of honor. It might make others feel excluded. The school wants everybody to “…feel recognized and honored for all that they have achieved over their high school career.”  So, how does excluding some from being recognized for their achievements honor all they have achieved? What about those who have not completed their requirements?

I think this is over-reaching. High school is a gateway to adult life. Adult life sometimes recognizes those who have gone beyond baseline achievement. As students, I think it is important to understand and to deal with this discrepancy, rather than dismiss it. It is okay to recognized other people’s success rather than attempt to lessen the other person’s worth by having their achievements go unnoticed.

Fair is a word with a lot of personal emotion imbedded in it. Is fair equitable? Is fair political or hierarchal? Is fair to act like we are all the same and every effort always equates to the same result or consequence? Is fair a decision I make?  What is fair?

Leave a comment with your thoughts on this.

Learn Where Life and Money Intersect for Money Mastery

I received a call from a gentleman who was referred to me. He was concerned about what his kids would do with his money, once they inherited it.

He told me he spent fifteen years building a company that he sold to another company for a generous profit. He said this new cash and stock infusion was significant to him. It represented an achievement he had worked hard to gain. He knew that the money was enough for he and his wife to live on and enough for his kids to benefit from but that’s not what he wanted the money to do. “I don’t want the money to provide so much security that life becomes a series of reality tv like experiences for my two teen age kids, caught up in the moment without any particular drive or interest. They’re already putting pressure on us about increasing their allowances and buying them new cars. It’s gotten tough on my wife and I to deal with this without feeling resentful.”

As our conversation continued, he revealed that money was never given to him as a child. He had to work for it. His wife also never had a lot growing up although she was given her parents’ car when she was 16 with the knowledge that she would have to turn it over to her brother when she was nineteen and he was sixteen. They couldn’t understand or appreciate their children’s covert and overt demands for money.

After a couple of meetings to understand their concerns and objectives, we decided to put together a 3-part financial program for the family. The first section was the “Financial Conversation.” This gave the kids an opportunity to express what money meant to them, their experience with money and what challenges they had with money. Their parents could only ask questions if they needed clarification on what was being discussed, not questions to judge or criticize. Then the parents had a chance to talk about what money meant to them, their experience with money and challenges they have faced with money.

Doing this in an environment where each participant felt like they could say what they wanted without fear of reprisal or judgment was crucial.  Each member came away from that meeting with a greater understanding of what money meant to themselves and to each other. This created a bond between them which we are now using in an exercise which involves an experience around money that the kids are doing as a team. They will report on their outcomes at the next meeting.

It is important for life and money to intersect so they can support each other rather than conflict with each other. It is critically important to do so in families where money matters so money and life can each be talked about with understanding and purpose rather than with judgment and directives.

Is Silence Always Golden?

Think back for a moment, back 2 generations and bring your grandparents to mind.  Can you name all 4 of them? If you can, I have another question for you: can you name their hobbies and interests …for all 4 of them? And if you can, I have one more question for you:  do you know what they stood for, or, said differently, what they believed in? Interesting? You are an exception if you know what even two of your grandparents believed in.

Now, join me as I take you one generation further back. How many of you can name your great grandparents…all 8 of them? In a room of 100 people, when I ask this question, I am amazed at how few can name all their great grandparents.

With the first set of questions, usually about 95% of the room can name their grandparents, about 65% can name their hobbies or interests, and less than 20% can name what all four pf their grandparents stood for.  Going back one generation further it is rare when more than 3% can name their great grandparents.  This is tragic because research has shown how beneficial it is for a child’s well-being to understand their family’s storied history.

In the 1990s, Dr. Duke, a psychologist at Emory University, along with a colleague, Dr. Robyn Fivush, tested a hypothesis. This initial thought was developed by a psychologist who found, while working with children that “The ones who know a lot about their families tend to do better when they face challenges.”  Dr. Duke and Dr. Fivush developed a measure to test this hypothesis.  From responses, they concluded that the more people knew about their family’s history, the stronger their sense of control over their lives, their higher their self-esteem and the successfully their believed their families functioned.”

Is silence always golden? No! How are you sharing your family story?

For more information, read here: https://www.nytimes.com/2013/03/17/fashion/the-family-stories-that-bind-us-this-life.html

2 Critical Issues Facing Family Businesses

For families with businesses, there are two big problems that surface as the family grows and ensuing generations get involved or migrate away from the family business.

Conversations about the business that may have started in the living room at home, moved to the kitchen, then a conference room then to a board room, often become a struggle as families grow and as individual agendas develop. Working well together, across generations, can become tense when visions are not aligned, and responsible stewardship is not defined. Competing and contrasting priorities due to generational differences, ownership positions, and desires for the business as contrasted with desires for the family harmony, surface.

It is not natural to manage such complexity. Like a garden who needs proper care and maintenance to stay healthy, relevant, and vibrant, a family is best served by developing a disciplined and purposed component to their family and family business dealings and becoming responsible stewards of what they are growing and eventually, passing down.

Determining an initial purpose to both the family and family business initially separate the two entities so they can clearly define themselves independently. Agreeing on and articulating the value, vision and mission of each entity across generations is key to being responsible stewards. Adapting and becoming comfortable with change is the responsibility of each generation.

Questions to consider asking at home:

  • Who do we want our family to be, as a family?
  • What do we want our family to represent in the community?
  • What is important to us as a family: what do we believe in? What do we stand for?

Creating purpose, mission, vision and family teams to develop the family’s success goes a long way to sustaining intergenerational trust and sustainability.

Questions to consider asking about the business:

  • What is the purpose and mission of the business?
  • Is the business meant to develop as a business or build family wealth?
  • What do we need to do to support our working together?
  • How do we communicate business information so it does not take over or interfere with the family environment?

Knowing the purpose of the business, communicating that to the family, developing trust in leadership development are all critical to successfully passing a business legacy and leadership from one generation to the next.

The Family Story is Powerful to Children

Several years ago, Emory University commissioned a study. The study was hosted by two prominent Emory psychologists, Robyn Fivush and Marshall Duke, and a former graduate student, Jennifer Bohanek. They wanted to understand the impact of family stories to a family’s dynamics with their adolescent members.

“Family stories” the researchers wrote, “…help children understand who they are in the world.” These unique and important stories help children understand who they are and where they come from, in a different way, but akin to the DNA tests available for us to take today. Neither of these will tell us who we are going to become, but they do shed light into that which brought us here.

The power of the important story is its experiential transmission of connectivity. Before this study, researchers had an inkling that family stories contributed to a child’s well-being and identity but had not measured their ideas. Now there was evidence. The study found that the teenagers in the study expressed “…higher levels of emotional well-being, and also higher levels of identity achievement, even when controlling for general level of family functioning.” Wow!

Although this is the first study of its kind to use a Do You Know Scale of measurement, it certainly is, for some, an eye opener, while for others, confirmation, on the power of important family stories.

What is your family’s story; not the where when or how, but the story of who and the why of the family? Your family story is a thread, a  link to identity and connection. Tell it to your family.

A Look Back and a Peek Forward

As 2018 closes its remaining open doors , I reflect back on those who have made my year the satisfying one it has been. I appreciate your journey to elevating that which matters and to strengthening the world of legacy, life and money matters.

 

Thank you for your support of the work Focus and Sustain promotes.

Thank you for your commitment to significance and purpose.

Thank you for sharing your stories of success and the weighty challenges you faced and dealt with.

 You have given me great insight with the conversations we have had.

 

You have given me an opportunity to think more clearly with the questions you have asked and the stories you have shared of your own journey on creating, building and sustaining  strong legacy families, lives with purpose, and powerful money behaviors.

 

You have been an essential ingredient to making the circle of Strength and Significance mightier than it was when this year began.

 

As I peek into the year ahead,

 

I wish you a Meaningfully Focused 2019

Give Your Family Its Wings

Are you building your wealth only to see it gone by the time your great, great grandchildren are growing up and asking about their roots? Most families do not keep ancestral footprints. You can change that by creating a living and engaging family history, footprint, and legacy.

According to research done by The Williams Group, who researched families of great wealth,  70% of families with  assets and stories, values and meaning, will find their money gone by the end of the 2nd generation. Shocking? For those 70%, probably yes.

The research continued to find that 90% of families are unable to have their wealth pass on beyond the third generation, in other words, beyond their grandchildren.  Why is this?

Families survive and thrive not by money transfers alone, the above statistic evidences that.  Families stay together because of a “why.” This “why” is the glue that voluntarily keeps them unified. This “why” includes the history of who you are, where you came from, what shaped you. It is your family’s living legacy.

Consider this: the etymology of Legacy according to the Online Etymology Dictionary stems from the 14th Century French: “legate-body of persons sent on a mission”, and from the middle Latin “ambassador or envoy.” Give your family its wings by creating its legacy. This will keep them connected for generations well beyond your initial contributions.

Who is Ready for their Inheritance?

If you have young kids, and you are wealthy, are your children wealthy? What about your grandchildren, are they wealthy? When I ask these questions to clients, they inevitable pause. I can almost see the wheels spinning in their heads as they consider the money paradigm  existing in their lives.

 

I often hear how they want their kids and grandkids to understand the value of thrift, to see and appreciate how hard it once was, not take money for granted, and yet also give their children and/or grandchildren opportunities and advantages available to them. But how can your progeny learn about life’s hardships when they have private tutors, unique vacations, and financial ignorance?

 

Money is not often discussed in families with wealth. The Wilmington Trust, in a poll they conducted,  found that sixty seven percent of respondents said they were uncomfortable talking about eventual inheritances and only ten percent provided complete information to their heirs.

 

Concerned that they might thwart motivation, self-worth, and confidence, wealth holders often will askew conversations about money. Hope, intuition, seat of pants guidance are common methodologies, but they are not recipes for success. Trusts and timelines are common tools to allocate money to next generations but neither of these prepare the inheritors from being ready to receive the money. Let me repeat that: neither of these prepare the inheritors from being ready to receive the money. Maybe it’s time to change that paradigm .

 

Prepare your family for their inheritance. Mentor them to become stewards of that which you worked hard and proudly to accumulate.  Ask them what money means to them. Ask them what they would do with money. Give them a small amount of money to see how they handle it. Let them make mistakes while mentoring them towards stewardship.

 

This is such an important topic, rather than avoid or delay talking about money, use the tools that allow you to create an environment of healthy money conversations and stewardship.   Contact me if you want to learn how to talk about money.

 

Money can become just another conversation. But you need to create that environment so when asked: “Who is Ready for their inheritance?” your children and grandchildren can say: “We are. We are stewards to a legacy. And we are ready in our roles and responsibilities to steward our inheritance.”

The Family with a Mission Sets a Cornerstone of Longevity

When I ask people about experiences they have had with the transition of wealth in their families, often, I get a shake of the head followed by a story of at least one person or one family branch creating an issue with the terms of distribution. This is still astounding to me, twenty years plus of asking this question.

Why, today, in our “enlightened states”, where information and coaches are ever present, do we fall into patterns that have been around for centuries? Why do we have to say: “My family is different” or “They get along. They’ll figure it out” only to find our families are right in the mix of fallen, disrupted, and broken families? I really do not get it.

What are we so afraid of uncovering that we would rather avoid, deny or hide it than seek to overcome it?

Many people think that merely preparing the assets for their eventual distribution is the answer to passing on an estate successfully. But those of you who have experienced, or, know of a family where distrust or antipathy, cloaked in polite communication, know a great mistake left  irreparable consequences.  Families are torn apart when instead they could have learned how to stay connected.

Becoming a legacy family means preparing the beneficiaries, your family members, to receive the assets. It means understanding the purpose of the wealth and the purpose of the family so the two can co-exist with agreement, understanding, and with stewardship that passes on what it has received and cultivated to the next generation.  Becoming a legacy family means looking at each other, understanding what you want to accomplish together and finding that place of agreement through shared values and inclusivity. Legacy derives from the word legate or mission. When a family has a mission, it sets a cornerstone of longevity.

I will stop here to give you an opportunity to soak in the essence of what has been conveyed here.

concrete hallway between white pillars and building

Photo by Pixabay on Pexels.com

Smart Money Tips for Kids from 3 to 22

Without a foundation of financial competence, people run the eventual risk of squandering, spending, or squabbling over money. Because of this it is essential to impart financial competence directly and early.

Having an early and repeated exposure to real money, gives children a direct experience with money. Collect coins and sort them into various sizes so your children are introduced to money.  Have them count the total of different coins and bills as an arithmetic and financial exercise. The writer downer here is to introduce them to money itself. Kids relate to the direct experience with it.

Observe your children with money and let them experience it. Be informal yet frequent about your dialogue with them about it. Kids from 5-7 age love games. Games that involve bartering are great activities for them. In this age group introduce them to different ways money is used.  Remember the piggy bank? This is a great time to introduce the piggy bank to your children.

8-11-year old children are at a great age to experience setting limits and making choices. Delayed gratification is an important trait to develop. You may have heard of the Stanford experiments to determine the effect of immediate versus delayed gratification. Delayed gratification correlated with higher SAT scores. It also correlated with self- control.  In this age group, delayed gratification can be expressed in self-determined goals/objectives and even incentives from you.

Preteens love to make buying decisions. They can handle the concept of limits. Have them set limits for themselves. They can understand ramification and consequences to exceeding budgets. Have them make budgets, not as tedious chores, but as a fun activity with gratifying outcomes.

Teens feel the pressure of their peers. This need of belonging can tug at their financial behaviors. “But, you don’t understand, I need this…now!” is a common plea. Reinforce their sense of responsibility by having your teens communicate the “why” of their, a “why” with consequences. This is also a wonderful time to Introduce them to the concept of earning, trading talents and skills for money that does not come from a family member.

Spreading their wings and testing their independent lives, young adults are often thrown into a world of a financial tightrope on which they may feel unprepared to take on. They have so many needs and wants tugging at them. How do they decide when to spend, when to save, how to invest and donate?  This is a time for young adults, if they haven’t already, to identify what money means to them and set up a system they can follow to save, invest, donate, earn, and spend.