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...experience shows how one family answered a common question facing wealthy (and some not-so-wealthy) parents: When children grow up amid plenty, how can they be taught to be sensible about money? We're not talking about checkbook-balancing skills. There is a plethora of practical advice for that, just as there's no shortage of guidance when it comes to transferring assets from one generation to the next. Harder to come by is advice for parents on how to bequeath to their children not just a fat inheritance, but also the values and work ethic that produced their...

Author: /time Magazine | Title: No Free Rides, Kid | 11/13/2008 | See Source »

...course, the children of wealthy parents don't always grow up to be self-indulgent, feckless adults, just as deprived children don't always become driven overachievers. But literature and media are stuffed with rich-kids-gone-bad stories, and there's plenty of anecdotal evidence that cosseted offspring can lack the thrift, independence, ambition, persistence and entrepreneurial spirit that contributed to their parents' success. Most people have heard of the "shirtsleeves to shirtsleeves" curse, which holds that family wealth, once accumulated, is typically dissipated by the third generation because trust-fund babies, having little regard for the money that...

Author: /time Magazine | Title: No Free Rides, Kid | 11/13/2008 | See Source »

...Rather, it's that kids in wealthy families often are given too much freedom, which leads to a sense of entitlement and a lack of accountability. Underlying the selfishness is insecurity, say Jon and Eileen Gallo, co-authors of the book Silver Spoon Kids: How Successful Parents Raise Responsible Children. "They grow up worried inside, thinking, 'Do people like me for who I am?'" says Jon. "It's about developing an identity of their own that's separate from their parents and their parents' money." Being born into wealth often means having a nanny, maid, driver and bank trust officer...

Author: /time Magazine | Title: No Free Rides, Kid | 11/13/2008 | See Source »

...Parents don't have to be child psychologists to help their kids become responsible adults. Some common parenting set pieces can lay a good foundation. In homes with nearly limitless assets, the challenge is to create limits, so that children can learn that money is something to be earned and husbanded - it is not a birthright that they are free to squander at will. One of the first steps parents should take is setting up an allowance for kids as soon as they start school, according to the Gallos. "The purpose [of an allowance] is to learn how to budget...

Author: /time Magazine | Title: No Free Rides, Kid | 11/13/2008 | See Source »

...organizers. They run outside or inside. Or they run to a doorway, which is no longer considered wise. Most injuries occur when people try to move during the shaking. It is much safer to drop, cover and hold on close to wherever you happen to be standing. Children actually are much better at this - because they have regular drills in school...

Author: /time Magazine | Title: Rehearsing for California's Big Earthquake | 11/12/2008 | See Source »

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