What Is Generational Wealth?
11 MIN READ | MAY 8, 2025
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Key Takeaways
- Generational wealth is the money and assets—like investments, real estate, and cash—that get passed down from one generation to the next.
- Most wealthy families lose their legacy by the third generation—because they never talk about money or prepare the next generation.
- To build lasting wealth, start with a strong foundation: get out of debt, save an emergency fund, invest 15%, pay off your house early, and teach your kids about money.
In a relay race, any runner will tell you that handoffs are the difference between winning and losing. If you can’t move the baton smoothly from one person to the next, you don’t stand a chance—no matter how fast you are!
When it comes to building wealth, you have your own handoff to manage. You need to start thinking about how you’ll pass your wealth to the next generation today. After all, the latest studies show that 10 out of 10 people are going to die someday. No one gets out of this life alive—not even you!
Whether you’re the first person in your family to pass on generational wealth or you’re next in line to inherit it, the steps you take right now can give your family the opportunity to embrace your legacy and build on it long after you’re gone.
What Is Generational Wealth?
Generational wealth includes all the assets—things like investments, real estate, cash and anything else that has financial value—that are passed down from one generation of a family to the next.
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