In the U.S. alone, new research says, the Baby Boomer and Silent generations are expected to pass down trillions of dollars by 2048, a phenomenon known as the Great Wealth Transfer. But what about the wisdom we’re called to transfer to the next generation? As we consider all we are passing to the generations that come after us, wisdom must be at the top of the list.
Wealth without wisdom can be destructive, often leading families to bicker when they lack a clear vision and values for their resources. As followers of Jesus, we have an opportunity to model wise stewardship for the next generation by honoring the Lord with all we have. The key question becomes: How can we prepare our heirs to be wise stewards of this legacy?
Here are several practices to help transfer both wisdom and wealth effectively:
Keep conversation ongoing
Families who talk together grow and stay together. Avoidance is irresponsible, and it is, indeed, poor stewardship of the Lord’s resources. Open conversations about wills, trusts, and succession planning are not only wise, they avoid future confusion. But don’t stop there. Discuss the why behind the wealth.
Storytelling and family history help younger generations appreciate the hard work and sacrifices that built the wealth. They also bring everyone together around a biblical foundation of values, ethics, and principles about to wealth creation. This helps the next generation embrace a sense of purpose and responsibility.
Become fluent in financial literacy
Lessons in budgeting, investing, taxation, and estate planning are crucial to prevent mismanagement and potential wealth loss. Without proper education, inherited wealth can easily be squandered. Older family members pass down wisdom as they mentor younger ones in financial and business matters.
The mature generation often has valuable perspectives on economic cycles, market fluctuations, and strategic planning. Coaching the younger generation to be patient and use a long-term approach can help them make sound financial decisions rather than seeking short-term gratification.
Experience generosity now
What greater delight than to see your children and grandchildren experience the joy of generosity? Younger generations may have different views on wealth distribution and social impact. They need the freedom to follow their giving passions. By transferring wisdom, older generations can guide heirs in giving responsibly, using tools like donor-advised funds or private foundations, and creating a positive legacy beyond financial success.
And family mission trips can be a bonding experience of practicing generosity through serving together. Wise families value being generous actively and together, while also respecting each other’s areas of interest.
But remember the Lord your God, for it is he who gives you the ability to produce wealth, and so confirms his covenant, which he swore to your ancestors, as it is today.
– Deuteronomy 8:18
Pursue intentional spiritual growth
When passing wisdom to the next generation, intentional spiritual growth is just as important as financial planning. Without a strong faith foundation, wealth can lose its true purpose. Wise families actively nurture faith, values, and character alongside money-management skills. Opportunities like Generous Giving’s Celebration of Generosity or a shorter Journey of Generosity are great options for exploring generosity together.
Or read and discuss Howard Dayton’s Charting Your Legacy together as a family. Most of all, model loving the Lord through worship at church, personal Bible study, and daily prayer.
For further study and prayer
Command those who are rich in this present world not to be arrogant nor to put their hope in wealth, which is so uncertain, but to put their hope in God, who richly provides us with everything for our enjoyment. Command them to do good, to be rich in good deeds, and to be generous and willing to share.
– 1 Timothy 6:17-19
Prayer: Lord, guide me to share wisdom with the next generation. Help me pass down faith, values, and understanding, so they steward their blessings with purpose and integrity. In Jesus’ name, Amen.
Application: Schedule a family meeting to discuss the transfer of wisdom and wealth.
Related reading: Proverbs 3:9-10, 13:11, 22:1; Ecclesiastes 5:10; Matthew 6:19-21
