Generational wealth: more than cash - a lasting legacy

Many families dream of leaving something behind for the next generation yet, in reality, the dream of passing on wealth rarely becomes a lasting legacy.

- Jaco Fouché

Research shows that 70% of inherited wealth is lost within the first generation, and 90% by the third. Why?

Because too many families focus on the numbers - assets, returns, taxes — without ever developing a shared vision, values, or an understanding of what wealth truly means.

And all too often, the next generation is unprepared to manage and value that wealth.

In this article, I challenge the traditional financial mindset.

We often define wealth narrowly - as money, property, or investments. But true generational wealth is much broader.

It refers to assets, resources, values and knowledge that are intentionally passed down from one generation to the next to improve their financial security, opportunities and well-being.

While it often includes tangible assets like homes, investments and businesses, it also encompasses human capital (education, skills, work ethic), intellectual capital (family wisdom and decision-making frameworks), social capital (relationships, networks and reputation).