How It Effects Our Generation
Intergenerational wealth creation is a concept that has been gaining more popularity as of late. It is the act of passing down wealth from one generation to another. This is especially true when it comes to families. Here, the theory is that as each generation graduates from high school and college, they will also experience a reduction in their income as well as salary.
With that said, there are intergenerational wealth issues that affect all families. For instance, if two generations have both worked, there obviously won’t be any left for the third generation. As a matter of fact, there can be some resentment as each generation competes with the other for opportunities. It may come down to who can provide for their children better. The concept, however, goes beyond just this.
When two generations are very different in terms of educational achievement, values, and way of life, they tend to create a significantly less wealth as compared to a family unit that has many similarities. In short, one generation’s struggle can impact the next. Additionally, intergenerational wealth is directly tied to the level of societal welfare. If a country allows a lower level of social assistance, then there is less intergenerational wealth within that country. This is one way that welfare helps families stay together.
Intergenerational Wealth – How It Effects Our Generation
In addition, intergenerational wealth is directly related to technological progress. The faster that technology develops, the higher the need for employees. However, this isn’t always the case. Older generations tend to value education and technical ability over a person’s social and emotional skills. In short, older generations may place importance on being a person first, before they consider wealth.
Another interesting concept is that of the “Lilliputian generation.” This refers to people who live in relatively small homes, often with only one or two adults in them. These individuals tend to stay connected to their parents and to live in places where neighbors are usually several generations older. They also spend a lot of time surfing the internet.
With the way that technology is developing, it is expected that intergenerational wealth will be much greater in the future. Intergenerational wealth is important because it provides opportunities for the younger generations to obtain financial stability and job security. As more children of current generation become more educated and enter the workplace, intergenerational wealth will continue to increase.