Talking about “Trust Fund Kids”

Setting up a trust fund for our kids will be mainly to ensure that they have financial stability for the future. So that when most of their mates are struggling to further their studies or to get capital to start up a business; they are covered.

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But with the turn of events, the Term “Trust Fund kids” has evolved. These youths with misplaced values take to a luxurious lifestyle, maintaining a constantly increasing “standard of living.” They are plagued with an unfortunately disproportionate preoccupation with consumerism.

The joy of parenthood is seeing our children become successful. Sadly however, some parents provide their kids with financial security, but not the understanding of the dynamics of value delivery, wise investment and wealth creation. They lack the simple but wise financial philosophy that “money doesn’t grow on trees”.

So then who is a ‘Trust Fund Kid?’

According to Urban Dictionary, the term refers to a “spoiled young adult living an idle life on investments” made available to them by their parents, or grandparents; they are provided with everything they need. Many times, this results in an unintentional sponsoring of a life of extravagance and reckless indulgence. This they do with little or no worries because they are not the ones that bear the brunt of paying bills.  There are instances of full grown adults driving a BMW, living in a Posh Estate, wearing top designer clothes with none of these acquired with his hard earned money.

Parents who have trust fund for their kids have the notion that it is the best way to show them love and affection. Thoughtful as that is, have they ever paused to think of the kids’ future when they are no alive or able to help due to some unforeseen circumstances. How would they face the harsh economy they were being ‘protected’ from?

Trust fund can create dependence and harm the beneficiary.

Ofcourse not! According to Investopedia, trust fund comprises of a variety of assets intended to provide benefits to an individual or organization. It provides financial security to an individual.

The individual has a better chance at making a valuable contribution to society, and living a truly fulfilling life!

 

But then….

It would do a great deal of good if we see parenting as the art of raising adults as opposed to raising kids. Working with the end in mind would determine our approach in order to produce the kind of adults we desire to make out of them. It is our duty as parents to help our children, grandchildren, and other beneficiaries develop into self-sufficient, well-rounded and fulfilled adults.  This goes beyond just laying up investments for them. Sometimes it helps, while sometimes it hurts.  Wisdom lies in knowing what applies in a specific situation.

 

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