George Appling Won’t Leave Any Inheritance For His Children, Despite Being Wealthy

George Appling said, “I met my husband, Brian, when I was 28, but we didn’t have children until I was 39 and he was 34. This was a deliberate choice, as I wanted to ensure financial stability before taking on the expenses of raising kids”.

“At the time, I was working as a business consultant and later became an executive. However, I always lived well below my means, which allowed me to save $1 million by the age of 36. With that financial cushion, I was able to pursue my passion for running a medieval fair”.

“Brian and I chose to have children via surrogacy. Today, our kids are 16, 14, and 14, and they understand that I don’t plan to leave them a large inheritance. Here’s what I’m doing instead and how I discuss money and wealth with them”.

I believe it’s harmful to make your kids wealthy

George Appling further explained, “I don’t plan to leave my children significant wealth because I believe it can negatively affect their ambition. When money comes too easily, it can diminish one’s drive. I want my kids to stay motivated and engaged with the world”.

“During a reunion at Harvard Business School, I attended a lecture on generational wealth where the professor highlighted the saying, “It takes one generation to build it, one to maintain it, and one to ruin it.” This sentiment exists in many cultures, reinforcing my belief that leaving a lot of wealth is dangerous. As a history enthusiast, I also believe history supports this”.

I’ll cover practical expenses like college, a car, and a down payment

George Appling said, “My children know I’ll pay for their college (up to $100,000 each), their first car, and a down payment on their first home. These contributions will be reasonable and practical, not extravagant”.

For example, when my daughter turned 16, we took her car shopping with a budget of $25,000. She chose a nine-year-old Nissan Pathfinder for $23,000, which was once top-of-the-line but remains practical.

I’ll establish a trust to offer business loans

I’ve created a trust that will help future generations with college, cars, and home down payments. Additionally, the trust will offer business loans, based on the Rockefeller family model.

To qualify for a loan, descendants must present a business plan evaluated by a third party. Each person will only get one loan unless they repay it in full.

My kids receive a $25 weekly allowance

Each of my kids gets $25 a week for completing basic chores, like cleaning up after dinner and taking out the trash. This allowance is for their wants, like their favorite Starbucks treats. Brian and I cover all their needs, although the lines between wants and needs can blur. For instance, I’ll cover the cost of a $25 pair of sunglasses, but if they want $200 designer sunglasses, they’ll need to use their own money.

I lead by example, living below my means

George Appling advised, “One of the most important financial habits is spending less than you earn. Living below my means allowed me to build financial security and eventually start a family. I model this for my children by driving a 2016 Ford F250 — it’s not flashy, but it’s practical for my needs, such as hauling horses and hay”.

I allow my kids to make financial mistakes

George Appling noted, “My kids work during the summer and saved about $1,000 each last year. When the summer ended, they spent their money quickly, mainly on Starbucks. I warned them they were overspending, but let them make the mistake”.

No amount of advice from me could match the lesson they learned when they realized they had spent an entire summer’s earnings on sugary drinks. In the future, I’ll offer guidance, but ultimately, they’ll have to learn from their own financial decisions.

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