Posted by: Jacqueline Thompson
Date: March 6, 2009

There was an interesting article dealing with the education of family members in a family owned business in the August 2008 issue of Trusts & Estates (“Fostering Independence”).  In it, a manager of a family office and a family business consultant discuss how a particular family business has structured their educational program.  As a financial family, they have broken their family members into five groups:  10 Children under the age of 16; 2) Family members of the youngest generation who are over the age of 16; 3) All other family members and their spouses; 4) Board members and trustees; and 5) Family office staff.

What particularly struck me as I was reading this article was the first group, that of children under the age of 16.  The authors note that some experts believe that financial habits are formed in children by age three.  Therefore, this family provides the parents with games and other educational resources that teach children financial responsibility.

While the idea of providing very young children with this type of education is interesting, I’m more impressed that the children who are too young to be involved in the family business are educated formally about the business that they will one day own.  Many family businesses would be strengthened by instituting a formal educational program for the youngest family members.

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