Why Rich People Aren’t Leaving their Money to their Kids

There are thousands of jobs one can venture to. But there is one that has always been the hardest, underrated, and unpaid, at least by the standards of every payroll handbook –parenting. No degree title or years of experience can prepare you for the job. Despite these, parenting has evolved throughout time and has enveloped not just the present but what comes after, that is, legacy.

Reasons Why the Rich are not Leaving their Money to Their Kids

More and more parents are putting top importance not just on raising their kids until they are self-capable. But also, the beliefs, values, and guidance they would carry on to the next generation. Not surprisingly, affluent people in our society who climbed their way to success have prioritized the power of legacy over handing a silver spoon to their children with the following reasons in mind.

1. Respect for Money and Work – A handful of recognized millionaires and billionaires who made the Forbes list started from the bottom and spawned their wealth in time through tenacity and unwavering determination. Sacrifices were made along the way that would have been unimaginable to some. Bill Gates, who has clung to the title of the wealthiest man in the past 16 years, decided to drop out from school to start his own software company. People of the same experience has gained not just wealth and experience but also, respect.

•  Equality and Advancement of Human Potential – Most of the people who worked hard to achieve success and amassed their fortune believe that overindulging children to wealth halts any potential they have. Relying on a trust fund would derail their drive to working hard to discover their strengths that might contribute a lot to society. Providing them as close to a fair head start as the rest of the world fosters their capability and individuality.

• Philanthropy – The strongest of all the reasons successful people chose not to give their wealth to their kids is humanitarianism. Most considered themselves lucky for acquiring such wealth and living a good life resulting in the urge to give back. Philanthropy has gone to great lengths and has given birth to many charitable institutions. One of which is The Giving Pledge organization created to address the most pressing problems of our society through donations from the richest families and individuals.

Famous People who Chose not to Leave their Money to their Children

Here are some of the wealthiest individuals who have taken the oath to give back to the community and are not leaving their money to their kids.

• Warren Buffet

Warren Buffet started life during the American Great Depression. He was fired with ambition and promised to make his first million by the age of 35. From a young age, the future investor showed a tremendous talent for numbers eventually evolving to his interest in stocks. He started the Buffet Partnership Limited which soon acquired what is now known as Berkshire Hathaway Incorporated. At the age of 30, he earned his first million. Today, he is considered one of the most successful investors in the world and has accumulated over $100.6 billion. All this wealth, however, will not be inherited by any of his children but instead has been allotted to charities and his personally founded organization, The Giving Pledge.

• Bill Gates

The founder of Microsoft has now racked up a total net worth of $130.5 billion. The billionaire has made public his opposing the idea of overindulging kids. In an interview with This Morning last 2017, he explained, “It’s not a favour to children to have huge sums of money because it distorts anything they might do in creating their own path.” Inspired by The Giving Pledge of co-billionaire Warren Buffet, he, along with his ex-wife, Melinda Gates, took the same commitment. They have also created one of the biggest charitable institutions, the Bill and Melinda Gates Foundation.

• Mark Zuckerberg

The Facebook founder announced in a post during the birth of their daughter that 99% of Facebook shares will be donated to a charitable cause. In the post addressed to his daughter, he said, “We will do our part to make this happen, not only because we love you, but also because we have a moral responsibility to all children in the next generation.”

• Lauren Powell Jobs

Lauren is a known businesswoman and founder of Emerson Collective. She is also heir to the wealth of her deceased husband, Steve Jobs. Her advocacies include educational reform, social retribution, and other philanthropic activities. Her net worth is estimated to be around $20 billion. The mother of three also has a firm opinion in passing on their families’ wealth. She was quoted in an interview with The New York Times, “I’m not interested in legacy wealth buildings, and my children know that.”

• George Lucas

George Lucas, the mind behind the Star Wars series, is also not endowing his fortune entirely to his kids. To date, he is recorded with a net worth of $7.2 billion. $4.05 billion of which were earned from selling his Star Wars franchise to Disney. In 2010, he became an active member of The Giving Pledge. Promising to donate at least half of his fortune by the time of his death to charities and other institutions.

Conclusion

While they are not leaving their money to their kids, these millionaires pledge to provide them with all the necessary support they would need to have a good start at life. The best education, travel, immersion, and guidance. Some of the parents will endow a few million dollars to their children, just enough to ensure a comfortable life. A modest amount compared to their fortune. They want to give their children the chance to work hard and experience the fulfillment of achieving their dreams. Instead of money, they are endowing their kids with values and appreciation of their own worth.