The importance of education for preserving wealth

Whether it’s 'shirtsleeves', 'clogs' or 'barn stalls', multi-generational, ultra-high-net-worth (UHNW) families know and understand the old 'three generations' adage all too well. As the Chinese would have it… ‘The first generation builds the wealth; the second generation live like gentlemen; the third generation must start all over again.’ 

“No matter the culture, families don’t have to go from ‘shirtsleeves to shirtsleeves in three generations,’” says Richard Marston, finance professor at the Wharton School. “It’s a problem when the family doesn’t start thinking about managing their wealth soon enough. The key is education, both about investments and family governance issues. Being able to have open discussions about wealth management, and understand each family member’s role can prevent that outcome.”

With (UHNW) families currently embroiled in the greatest wealth and power transition in history, it has never been more important for all generations to be informed about the fundamentals of family wealth, governance and legacy. 

As revealed in Campden Wealth’s European Family Office Report 2022, those self-same dynasties agree, with nearly have of those surveyed citing the absolute importance of education as a top governance priority. Well-defined communication and clear-eyed leadership are required to ensure the difficult subjects of wealth, relationships and entitlement are dealt with sensitively across all generations.

When it comes to ensuring a positive and effective succession process, the same report found that the necessity of the family office education is well understood but, as ever, more needs to be done. Especially as 27% of those surveyed admit they don’t feel sufficiently prepared to help Next Gens understand their post-succession roles and only 42% of family offices believe their Next Gens are sufficiently prepared for succession.

Providing a foundation of knowledge and tools for successfully managing family wealth across the generations, Campden Education and The Family Wealth Essentials Series is the first virtual training platform of its kind to deliver valuable lessons covering the subjects of stewardship, governance, communication, conflict, leadership, family office and succession. 

Gleaned from the shared experiences of world-class family business owners and their next generation, The Family Wealth Essentials Series equips wealth holders with the knowledge to become responsible stewards of their family fortune, business and values; and helps families to evolve, adapt and be prepared for transition. 

Delivered in bite-sized video tutorials and facilitated virtual lessons, which can be accessed from any device, the modules are presented by the rising generation of family members, owners and expert practitioners, and cover such essential subjects as; becoming responsible stewards of family wealth; family governance; family communication and conflict management; family business leadership; family office; and succession planning.

Module facilitators at launch include; Nick Di Loreto, principal of BanyanGlobal; Jennifer East, founder of ONIDA Family Advisors Inc; Grégoire Imfeld, founder of One Family Governance; Alexandra Sharpe, co-founder of Kinestra Partners; Bryn Mars Monahan, fourth-generation family member and family enterprise consultant; Philip Mackeown, fifth-generation family member and business leadership and career coach; and Emily Griffiths-Hamilton, third-generation family member and family enterprise advisor.

Additionally, The Family Wealth Essentials Series - which is aimed at the current owners, principals, Next Gen and the rising generation of family-run enterprises, family offices and foundations – features deeply insightful case studies from respected multi-generational families, such as the Brown family, the Cayzer family, the Du Pont family, the King family, the Mathile family, and the Weston family.

For further information on The Family Wealth Essentials Series, visit CampdenEducation.com.