You may have heard the term “generational wealth” before, but what does it mean? It’s a pretty simple concept: generational wealth means that your family’s assets are passed down from generation to generation. In essence, it means that you’re building up a financial legacy for your children and grandchildren. But how do you get started?
First, you should educate yourself on how to invest in a way that will help your family build up their own wealth. There are plenty of resources available online and in print to help you learn more about investing. The more knowledge you have on this topic, the better equipped you’ll be to make smart decisions about where your money should go.
Statistics show that one in three Americans don’t save any money at all each month—and even if they do save something (even just $5), they probably aren’t doing it effectively enough for their savings accounts to grow into something substantial over time.
Index funds are one way to invest in the market with an eye towards growth over time; these funds typically hold hundreds of different stocks within them, which makes them less risky than individual stocks might be (if one company goes bankrupt or loses its value significantly).
