The results of a new survey from PNC Wealth Management reveal that wealthy Americans are suffering a bit of a paradox when it comes to raising their children. The intent of the survey was to ascertain how American millionaires feel about raising their children in a life of privilege, as well as their estate plans when it comes to those children.
On one hand, survey respondents want their children to be humble, hard-working people, who have learned that success comes from hard work and not their pedigree; on the other hand, wealthy parents continue to provide their children with virtually everything they want. Do you need a new car? No problem. Are you looking to explore Europe? Your plane leaves on Monday. Do you want an Ivy League education? The tuition check is already in the mail.
However, the desire to provide for their children is an understandable one, since most every parent desires the same thing. Only 12% of survey respondents reported that they had grown up in a life of privilege, and the rest of the respondents either came from a poor background or an average one; therefore, perhaps the willingness to provide their children with everything comes from their own struggles to succeed.
Adding to the evidence of the paradox is the fact that, even though 82% of the respondents felt that their children should have to create their own wealth, around half of the respondents planned to leave their children over $500,000, and 61% are planning to pass “substantial” inheritances to their kids.