The Key to Building Generational Wealth


September 12, 2025

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Research shows that 70% of wealthy families lose their fortune by the second generation, and 90% by the third. These striking numbers emphasize how fragile wealth can be without proper guidance. More than just passing down assets, it is crucial to pass down the knowledge, values, and discipline needed to preserve and grow them. Equipping younger generations with the right skills to ensure that wealth becomes a lasting legacy rather than a temporary achievement. Here are ways they can learn, grow, and take steps toward sustaining and building generational wealth:

  1. Formal Education Formal education plays a significant role in building generational wealth. Obtaining a college degree or vocational training can greatly increase an individual's earning potential by opening doors to higher-paying job opportunities. Additionally, education equips individuals with the skills and knowledge needed to succeed in their chosen fields, enabling them to build stable careers and accumulate financial resources. Over time, this stability and increased income can contribute to long-term wealth that can be passed down to future generations.

  1. Financial Education Financial education is the process of teaching individuals how to manage their money and build long-term financial security. It plays a crucial role in creating and sustaining generational wealth. People who understand personal finance and investing are more likely to make informed decisions, allowing them to grow their assets over time. For example, investing in insurance not only protects against unexpected risks but also ensures that wealth can be preserved and passed on to future generations. 

  1. Life Skills Life skills play a vital role in building generational wealth by helping individuals make responsible and informed decisions in their daily lives. Skills such as effective communication, time management, problem-solving, and critical thinking contribute to personal and professional success, which in turn supports financial stability. Additionally, strong decision-making and goal-setting abilities enable individuals to plan for the future, manage resources wisely, and avoid common financial pitfalls. When these life skills are practiced and passed down through generations, they create a foundation for long-term success and wealth accumulation within families.

Building and sustaining generational wealth is not achieved overnight– it requires consistent learning, planning, and making smart financial habits. By taking proactive steps today, individuals can secure a stronger financial future for themselves and future generations. Part of this journey is understanding how tools like insurance work, not just as protection against life’s uncertainties, but also as a foundation for preserving and transferring wealth. The more you learn about insurance and its role in financial planning, the better equipped you’ll be to turn wealth into a lasting legacy. To learn more about the different insurance plans, visit https://plgic.ph/ParamountDirect.




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