From Yahoo Finance: 2025-06-17 15:35:00

Data from the Congressional Budget Office shows that 28% of families in the top third of the income distribution received an inheritance, compared to only 17% of those in the bottom third. Generational wealth can help children get off on the right financial foot by providing assets like cash, property, investments, and businesses.

Generational wealth can be passed down through an inheritance or built during your lifetime by paying for higher education, helping with a home purchase, or giving financial gifts. This financial head start can make a significant difference in younger generations’ financial stability and opportunities.

Investing early, utilizing tax-advantaged accounts, minimizing fees, and diversifying your portfolio are key strategies for building generational wealth. Homeownership is a primary wealth-building tool, and starting a business can exponentially grow income and assets for future generations.

Estate planning is essential for controlling the transfer of wealth and minimizing financial losses after you pass away. Creating an estate plan involves taking inventory of assets, choosing beneficiaries, and creating a will. Financial education within your family can help ensure that wealth lasts for generations to come.

Read more: What is generational wealth, and how do you build it?