Rich kids need to be carefully taught

As noticed in the preceding posts, Sir Tom Hunter and Mr. Andrew Carnegie advise the New Rich to give their billions away, not heap it upon their kids.

Not all wealthy parents like that advice. What's more, even the few millions one might leave to a son or daughter as a modest life endowment could easily look like making-whoopee money to an untutored young person.

Hence the growing emphasis on helping ultra-high-net-worth parents teach their potential heirs to be self reliant and financially literate. For a discussion of this subject recently commissioned by Northern Trust, see Preparing Children for a Life of Wealth.

This week, by the way, Northern's web site announces a nice honor. Private Banking International magazine has selected Northern Trust as the winner of the Outstanding Private Bank—The Americas Award 2005.