Unlocking Enduring Wealth

Robert Balentine and Adrian Cronje recently hosted a webinar for CEO.org to discuss insights from their book First Generation Wealth: Three Enduring Principles for Long-Lasting Wealth and An Enduring Family Legacy. In their discussion with CEOs from around the world, several questions surfaced. We’ve summarized the top four questions and Robert & Adrian’s thoughts below.

‍

Question 1: At what age is it appropriate to begin conversations about wealth within the family?

“I don’t think you can start too early, but I think you have to give bite-sized doses in a language that they can understand at the time.” - Robert Balentine

“Being able to create a safe environment for these organic conversations on their terms, not yours, is paramount…At the end of the day, I think our book is all about trying to make families be good decision-makers.” - Adrian Cronje

Robert shared the story of an entrepreneur who wanted to put his children through performance reviews at Thanksgiving. As an entrepreneur, you may be well-versed in financial concepts — but your family does not have your training. Rather than relying on business knowledge, you need to work together to develop your own language around family and legacy. If you want to create family harmony, you have to be willing to have courageous conversations and be very vulnerable and transparent.

‍

Question 2: What do you suggest when you have done such a good job teaching your children the importance of hard work and their own accomplishments that they actually don’t want any inheritance at all and refuse any assistance after college?

“I think it’s actually a wonderful problem when the child wants to make it on their own. They want to be affirmed. They want to have the joy that comes from earning a living, and they don’t want to feel like they're under their parent's thumb financially.” - Robert Balentine

Different generations have different views of money, business, and legacy. To bridge the gap, you have got to put yourself in the place of the next generation and really look at things through their eyes. Some parents may want their children to come into the business, which could be crippling because it can be very intimidating for a child of a successful parent to think, how am I ever going to measure up to what my mom or dad did. You don’t want to create an expectation for your children that is not in sync or in concert with what they want to do. It is about creating a safe environment where your children can be your children with your guidance, but you don’t have to be the one to try to force a life upon them that they have no interest in.

‍

Question 3: We have a family business approaching its fifth generation. How can we encourage the first-generation mindset among millennials?

“It all starts with intentional effort around transparency and communication within the family... [Tell the next generation] that they are [not] going to have the business handed to them, but rather that they [will] have to buy the business from the previous generation.” - Adrian Cronje

Culture and communication are key building blocks to building a great business and family – and when entrepreneurs are intentional about it, they set an example for future generations. Alignment, curiosity, and emphasis on learning really helps generations adapt to wealth and build resilient families over time. Adrian shared that it can be meaningful for the younger generation to purchase the business from an older generation because it encourages the first-generation mindset and the feeling of true ownership.

‍

Question 4: Why do you think the book is resonating with the published community the way it is?

“I think it’s because people are yearning for some clarity around what are the best practices for raising children and families of affluence without spoiling them.” - Robert Balentine

“What we try to do for our clients is help them define and fulfill their legacies. And it is our privilege to be their guide on their journey to fulfilling their legacy.” – Adrian Cronje

Wealth does not equal legacy – at the end of the day, we are all more than our money. How can you, with your children and grandchildren, set an example of a life well lived? It’s hard to do and it’s not something that we need to be thinking about in the latter years of life. It is something we need to be thinking about early in our careers. Learning what it takes to build a meaningful legacy to best support future generations is fulfilling and will lead to preserving your wealth and legacy. This book provides a roadmap that defines how to channel the wealth you have been fortunate to create to impact your community and your family.

‍

Read more about Family & Legacy at www.firstgenerationwealth.com.

‍