In a world where seemingly no one is immune to the impacts of AI on the workforce and an increasingly stiff job market, ultra-high net worth people are starting to have the same concerns as middle-class and low-income families: Will my kid be able to get a job and support themself?
Dwyer said his clients are concerned their children, typically between age 22 and 35, are struggling to secure and hang on to jobs that are historically associated with security and status, including technology, law, and health care. That means the wealthy will have to plan for a future in which they’re passing on more of their fortune to their kids.
“[They’re] realizing that if they don’t pass on more meaningful wealth to their children, or their children are not able to accumulate wealth … their kids could have [less] agency over their lives than they did,” he told CNBC.
While this may sound like an irrational fear from America’s wealthiest, it’s a reality more wealth managers recognize.
“This is a very real concern I’m hearing from ultra-affluent families right now,” Thiegs said. “On the surface it can sound irrational: ‘Why would a billionaire worry about their child getting a job?’ But realistically, no matter how much money you have, parents still want their children to succeed and lead fulfilled lives.”
The job market jitters Gen Zers face directly impacts how their parents can help them plan for their financial futures.
But the crux of the problem isn’t that parents fear they won’t financially be able to help their children, it’s more that they’re worried they won’t have the same career outcomes and sense of fulfillment as past generations.
“They’re not usually worried about the financial security of their children; rather they worry that the job market will impact their child’s sense of purpose, identity, and confidence,” Thiegs said. “They also worry that significant wealth will dampen their drive or desire to work.”
But that doesn’t mean Thiegs encourages his clients just to bankroll their kids for the foreseeable future. Instead, estate planning, investing, and other long-term financial planning is a must.
“When parents are worried about their children’s job security, we recommend creating a system that provides opportunities for growth and development rather than just a financial safety net,” he said.
It’s more important to implement plans that support a child’s self worth than just their net worth, he added.
“This cohort of parents seem more concerned about over-supporting their children, than under-supporting them,” Von Ahsen told Fortune.
This all means, though, billionaires and other high-net worth individuals have to financially plan differently from how they might have in the past. They have to design financial plans that “encourage growth and responsibility” instead of only making large inheritances all at once, Von Ahsen said.
“We see more emphasis on education funding flexibility, mentorship, and phased wealth transfers,” he said. It’s “really an attitude moving toward providing opportunity without removing initiative.
