Imagine the anguish of a wealthy family whose heirs are hopeless with money.We’ve seen it before — excessive partying on the French Riviera leads to a reality TV show and a model/actress girlfriend with a penchant for multi-million dollar mansions and fast cars.
And then poof! There goes the family fortune.
But it doesn’t have to be this way, Bloomberg Markets magazine reports. Now the uber wealthy can send their children to ‘money camps’ to teach them how to manage the vast wealth they’re going to inherit.
‘Money camps’ are special bi-weekly workshops where the 6 to 11 year-old heirs to wealthy families “compete to corner commodities markets in Pit, the raucous Parker Brothers card game,” or participate in “‘business in a box,’ examining products that aren’t obvious gold mines, such as the packaging on Apple Inc.’s iPhone rather than the phone itself.”
These camps are set up by small(ish) multifamily wealth management offices. Apparently, financial planning for the adults — estate planning etc. — is not enough. The kids need to get informed too. That’s why Katherine Lintz, founder of Clayton, Missouri- based Financial Management Partners, which runs the camp for the children of clients, hired a maths teacher to design a camp curriculum for the young ones.
Creating long-term family relationships is part of what Lintz’s money camps are about. She says about 30 kids had gone through the program as of mid-July. Another 20 high school and college kids have taken courses on budgets and taxes.
“The firms that are growing are committed to this kind of work,” Lintz says.
The big banks, she says, had better upgrade their services — and maybe hire some camp directors — or risk losing clients to their smaller and more nimble competitors.
Can you imagine Goldman’s kid camp? Yeah, hilarious.