Many younger children of wealthy parents put great store by traditional values such as the family; they have a sense of responsibility for the wealth they will inherit; and they value education and the work ethic. These are the findings of a survey carried out by Morgan Stanley Private Wealth Management and Campden Wealth of 87 ultra-high net worth individuals under the age of 40, who come from families with a minimum wealth of $25 million.
In particular, the survey concentrated on those born between 1982 and 2000. It found that 63% of them view themselves as stewards of their wealth for future generations, and 58% view their wealth as a vehicle to help the community. The vast majority – 95% – say that they recognise what is important to their families, with 64% saying that they believe that their values are highly aligned with those of their parents. Only 6% said that they felt that their belief systems differed significantly from those of their parents.
The group surveyed value greatly education, both their own and that of future generations in their families. They also indicated strong interests in areas such as philanthropy, investment and entrepreneurism. Even though they could afford to live an idle life, very few of them want to: 81% put great store by having a successful career; and 68% of them expect to continue working even after they inherit substantial amounts of their parents’ wealth.
Very telling, too, are the responses to questions about suitable ways to spend money were they to have to borrow it. Once again, the value of education stands out, with 67% believing that it is very appropriate to borrow money for education. Almost as much value is put by borrowing money to fund the purchase of a primary residence (63% are in favour of that); while just 7% consider that it would be appropriate to borrow money to fund the purchase of personal luxuries.
And it is very interesting to see how this generation, which is so used to social media and for whom a “conversation” often means exchanging views via text, e-mail or other non-verbal means, values personal contact when it comes to managing their money. A massive 82% say that they want to discuss their financial affairs face-to-face with their financial adviser (and 63% agree that they need a financial adviser). The majority would be happy to conduct some business over the ‘phone or via e-mail, but 85% of them want to keep social media – for just that: social purposes. “Don’t tweet financial advice” is the message which comes across loud and clear.
Assuming that this sample can be taken as typical of the generation aged 14 to 32, it would appear that many wealthy parents can feel that they can hand their wealth on safely to their offspring. The majority have instilled sound values into their children. The younger generation as “the idle rich” would seem to be a myth.
