The Perils of Inherited Wealth and the Power of Self-Made Success

As parents, we all want the best for our children. And when we've created wealth and financial security for ourselves, it's natural to want to pass that security on to our kids. But in doing so, we risk doing irreparable damage to their development, independence, ambition, and self-trust.

Take the story of the Vanderbilt family. Cornelius Vanderbilt, the patriarch of the family, was one of the wealthiest people in history, amassing a fortune worth 2.1 billion dollars, when adjusted for inflation.

When he died, he left the bulk of his wealth to his son, William Henry Vanderbilt. Over the course of several generations, the Vanderbilt family squandered their fortune, to the point where there was not a single millionaire left in the family.

When parents create wealth, there is a natural impulse to use that money to create a better life for their children. And that's perfectly fine. But the key is to use that wealth as a safety net, not as their fuel. By providing our children with the security they need to take risks and pursue their dreams, we give them the space to develop independence, ambition, and self-trust.

When we hand our children everything on a silver platter, we risk robbing them of the opportunity to develop these critical traits. Without independence, ambition, and self-trust, our children will struggle to succeed on their own, and they will never experience the sense of accomplishment that comes from achieving something through their own hard work and determination.

There is one Vanderbilt descendant alive today that is a millionaire, though. His name is Anderson Cooper, and he created his legacy in despite his birthright, not because of it.