In a recent interview with Bloomberg TV, Kyla Scanlon touted the need for investing and noted that a massive, yet highly concentrated, transfer of generational wealth is underway. But the top 5% don’t have to be the only ones inheriting money.

“That’s why investing is important because generational wealth has to start somewhere,” she said.

Standing in the way of that is Gen Z’s nihilism, which is driving young people’s decisions to rack up credit card debt and not save for retirement, Scanlon warned.

The generation’s disillusionment will also influence what career path they might choose. And when they do invest, it’s with that same mindset that nothing really matters.

“They’re very mad,” she said. “They’re extremely anxious, and they’re extremely distrustful.”

Scanlon, who famously coined the term “vibecession” to explain the earlier disconnect between low consumer sentiment and robust spending, told Bloomberg that much of what she does is dispelling misinformation.

That includes pointing out how much influencers try to overstate their gains and countering a “pump-and-dump community” online.

For her part, she owns a wide variety of assets and said most people are better off buying and holding, but cautioned that she is not giving investment advice. Her own portfolio includes United Airlines stock because she is a frequent customer and Sweetgreen stock because she enjoys the restaurant chain’s salads.

In addition, she has utility ETFs, crypto, bonds and some gold, while noting that a lot of her money is in the S&P 500 because it offers broad exposure.

“The way I do it is I put $50 every month into the S&P—no matter what—and I’ll allocate more if I can,” she said.

That regular monthly flow is especially notable given the rollercoaster ride investors have been on this year. The stock market has staged a stunning recovery after crashing earlier this year on President Donald Trump’s trade war.

Just three months ago, the S&P 500 flirted with a bear market, but has since shot back up, setting new all-time highs and is up nearly 7% in the year to date. Still, stocks in Europe and China are easily outperforming U.S. markets.

Despite all the market-rattling headlines, Scanlon said learning about investing is still important.

“I think the day-to-day news flow can make it seem like it’s not worth it,” she explained. “Like it’s just pure nihilism. It’s scary, like it activates our fight or flight all the time. But it is worth it, especially if you think on a long-term horizon, which I challenge everybody to do. It’s totally worth it.”

As always, The Motley Fool cannot and does not provide personalized investing or financial advice. This information is for informational and educational purposes only and is not a substitute for professional financial advice. Always seek the guidance of a qualified financial advisor for any questions regarding your personal financial situation. If you’d like to submit your question for feedback, you can do so here.

What would you do differently if you knew that you were going to be inheriting a lot of money? This is a question that a Reddit poster asked recently, after he discovered that he and his wife are going to be receiving millions when his parents pass away.

What do you wish you knew before inheriting potentially life changing $?
byu/Maleficent_Cut_4344 ininheritance

Since he wants to be ready for the inheritance that he knows is coming, he asked others who had already received a substantial financial gift what advice they might have or what they wish they knew in advance before the payment came. Fortunately, Reddit users came through with some helpful suggestions.

Image source: Getty Images.

Finding out that a big inheritance is coming can be life-changing

The Redditor who started the thread explained that he and his wife are both in their 50s. His parents, who are in their 70s, informed him that they will be leaving him 45% of their $5 million estate, including $3 million in retirement accounts, $500,000 in savings, and a $1.5 million home.

The original poster (OP) and his wife have already been budgeting and saving, and they were anticipating retiring in seven years when they hit their own target retirement account balance. Their medical needs will also be taken care of by an employer when they retire early, which he described as a nice bonus since he doesn’t have to pay for individual insurance coverage.

So, now he’s trying to figure out what to do. He said he thinks they may spend around 10% of the inheritance in the first few years after receiving it, then leave 90% of the money behind to build generational wealth for his kids. But he wants to know what others who had received a big sum would do to see if his plan would work, if there are steps he should be taking now, or if they would do anything differently.

Should you make plans in advance for a big inheritance?

A number of Reddit posters chimed in with a smart suggestion for the OP, advising him that he should talk with a professional about his situation. After all, $2.5 million is more money than most people will have in their lifetime, and unfortunately, a lot of people do end up spending an inheritance too quickly if they don’t know how to manage it. The OP has the potential to set up future generations with financial security if he makes the right choices, and a financial advisor could help him to do that.

That may be an especially good idea, as the OP has indicated that he and his wife plan to spend as much as 10% of the inheritance in the first few years. It’s a bit of a red flag that they are already planning on spending money that they won’t get potentially for some years, and a large amount of it, too. Once they start spending, they may get used to living that lavish lifestyle, and it may be hard to cut back. Or they may make commitments and make expensive purchases, like a big new house, that come with ongoing costs.

Other posters also shared concerns about the potential for the OP to squander the inheritance, so they suggested making a careful and detailed budget to ensure that the money doesn’t end up simply slipping through the poster’s fingers. Focusing on long-term growth strategies and spending a small amount at a time, at a safe withdrawal rate, could allow the OP to make the most of the inheritance both for himself and for his kids, rather than just jumping into spending 10% of the money right away in the first couple of years.

The reality is that $2.5 million, and potentially more if the money grows, can make a big difference — but only if the money is truly used wisely. So the OP needs to think carefully about what his goals are for the funds and make a plan to achieve them.

The first two episodes of Bravo’s Next Gen NYC are now available to stream on Peacock, and instead of a typical Bravo Dyke review, I decided to tap in Drew Burnett Gregory, who does not really watch reality television, to write a dual conversational review with me! Here’s what we thought about the show, which according to Bravo “follows a tangled web of friends raised in the spotlight — or at least close enough for good lighting — as they stumble into adulthood one brunch, breakup and spontaneous decision at a time.”

Drew: My first question: Do Bravo camera crews have to just spend their evenings hanging out at the club with these people?

Kayla: YES they do. But something that is not super typical is how many times we saw crew in shots here, especially for this early on in the series. But also this show wouldn’t really work without breaking the fourth wall, so I am glad they’re doing so and often.

Drew: I really liked the moment when Brooks predicted how they were going to edit his interview. I’m sure other adult Housewives are seasoned by this point, but there’s a different quality to a group of people who grew up being filmed.

Kayla: Yeah it is both alarming and fascinating to consider these four young adults — Riley, Brooks, Ariana, and Gia — have been filmed for soooooo much of their lives. The girls especially. Brooks came into it in his late teens. But the girls have been filmed their ENTIRE LIVES.

Drew: I do think if you were on reality TV as a child you’ve earned the right to live in a 12k a month Alphabet City apartment. This is where my radical politic finds its limit.

Kayla: Right, it’s like, how much can I really FEEL for these extreme versions of nepo babies/inheritors of extreme generational wealth? And yet, something about them growing up on reality TV does make me feel for them!!!! That’s fucked UP and they didn’t CHOOSE IT!

And…boy do I feel for Ariana about her MOTHER STEALING MONEY FROM HER. I went into this show with relatively low expectations, but I sat the fuck UP when she started talking about that. I was like ohhhhhhhh this is REAL LIFE SHIT. And I don’t think you even really need any of the backstory about her family to pick up what’s going on there.

Drew: Yeah, okay, should we give some context? You’re a Bravo expert, meanwhile I’ve only watched two episodes with my sister a decade ago and like four episodes with you in the past year. I’m only here today because of my identities: trans and went to NYU.

Kayla: Yeah so this show was definitely marketed originally as being about the offspring of Real Housewives, and I thought there couldn’t possibly be enough juice to that premise alone. Then I learned more about the series, that in fact it’s more about a whole friend group of rich kids in New York, most of whom went to NYU, and only four of them are Real Housewives babies. The rest have rich/famous parents in some way (except maybe Georgia, Emira, and OnlyFans boy lol is his name Dylan?). So it’s more about like…Gen Z and generational wealth. Which also shouldn’t really have juice to it, but I think it has some juice! Lol

And then also, yeah, for the first time ever, there’s a trans main cast member on a Bravo show. Emira! She doesn’t really have much of a storyline yet, but her relationship seems very cute.

Drew: I was surprised by how casual they let her transness be. Maybe it’ll come up more later, but they’re not forcing it in a way I appreciate.

Kayla: I agree! But also not like ERASING it entirely — like at one point one of her videos that they had on screen had a reference to misgendering in the overlaid text. It really does feel so against the grain from how trans people have historically been treated by reality television. She gets to just be trans, without transness being “her storyline.”

Drew: Yes exactly! I kept forgetting that the impetus for me watching was the first trans Bravo main cast member and was just like “NYU alum clocking in for duty.”

Kayla: No to be fair your cis coworker (me) asked you to watch the show with me thinking it would be interesting to have a non-Bravo point of view about the first trans Bravo main cast member and then EGG ON MY FACE because it turns out your way more relevant expertise is “went to NYU.”

Drew: Trans people contain multitudes! And one of my worst tudes is having lived in Alphabet City from 2013-2015.

Kayla: LOL

Drew: I paid $800 a month to share a two bedroom with three people but…

Kayla: How accurate is the “went to NYU” of it all? Did you interact with people like this at NYU? Was the going out culture like this? Please tell me you knew a Georgia, because there’s something about Georgia where I’m like oh that’s a real type.

Drew: Look, I WISH I had been better at hanging with these kinds of people at NYU. I would probably be much more successful. I think coming from an upper middle class suburb where the wealth worship was what I was trying to escape, the idea of even wealthier people with the same aesthetics really turned me off. So I feel like these people hovered around me, but I didn’t spend a lot of time with them. Like I met my first girlfriend in our scholarship seminar, my best friend in the film department was someone from Minnesota who by year two was more interested in poetry. I’ve never been good at social climbing despite being so close to the mountains so to speak.

But imagine hanging out with a group of people where the only one who has seen When Harry Met Sally doesn’t wash her hands! I didn’t want that. Though I will say, yes, Georgia is a very familiar type, probably the type I was around most of this cast, and I’m sorry but I’m Team Riley in hand wash gate.

Kayla: I am ALSO Team Riley, especially since I sense Georgia getting into racist microaggression territory. Like she tries to say Riley was “scary” about it, and then the footage re-rolls and it’s literally just Riley being kind of sarcastic and funny about it?!

I think it is very bold in a society ravaged by superviruses to take that hard of a stance on not washing your hands. I am not even all that grossed out by germs at all. So the fact that EYE was appalled by how much she was doubling down on it? It made sense when she was clearly wasted the first time it came up…but after that? I think Georgia is in for a rude awakening when she watches herself back. And I know she’s trying to be funny, but “my body my choice” was not landing lol

Drew: I was already against her because people should wash their hands, but then yeah calling Riley scary really removed any goodwill I had toward her as the group underdog.

And also yeah weren’t these people like formed amid Covid? I keep wanting to call them kids but I get they’re like 22-25. But that means peak adolescence in Covid!!!

Kayla: IN NEW YORK! Georgia is a native New Yorker! She should be traumatized by germs/viruses lol

I am interested in the dichotomies in the cast of like: native/transplant and then especially generational wealth/self made.

Drew: Yes for sure. I wanted to root for Georgia for growing up “between poor and middle class” before she lost me. Now I’m just rooting for Dylan and his OnlyFans career. And his… “it’s just skin” in response to how dicks taste

Kayla: He really cracked me up a few times. Charlie meanwhile is trying so HARD to be the villain that it isn’t working. It’s too obvious!

Drew: He doesn’t have his heart in it. You know Werner Herzog’s ecstatic truth? Like in documentary when something is staged but it reaches a deeper truth. I felt like Charlie’s performance was an ecstatic lie.

Kayla: Someone who WANTS to be a fuckboy that badly is not a fuckboy.

He thinks he’s making good TV by fucking with Brooks and it’s really just pathetic. I will say I’m obsessed with the throwback nature of Brooks being a little helpless gay boy surrounded by an army of powerful femmes who would KILL for him. That’s some mid-aughts middle school social dynamics right there!

Drew: I also love the idea of having a Bravo show about a generation where half the people are openly conflict avoidant.

Kayla: Which is rooted in their TRAUMA from their parents being Housewives!!

Drew: I thought it was just a Gen Z thing, but wow you’re right.

Kayla: Were you familiar with Gia’s childhood song prior to this via TikTok — which btw was about her parents’ marriage being broken…the fact that it became a meme and she was so young in it really tells you everything you need to know about how she has been impacted psychologically by reality TV.

Drew: I knew the meme but had NO IDEA it was from Housewives. I gasped lol

Like revealing that back in the day Brooks bit Charlie’s finger.

Kayla: You really do have to read Brooks’ Strategist “what I can’t live without” guide, it’s iconic. One of the things on it is water.

Drew: Wow so true

Kayla: He really was more or less outed on Real Housewives.

Drew: Did I hear right that Brooks called himself an activist?

Kayla: Oh lord, did he lol I missed that. But delusion/exaggeration does run in the Marks family.

Drew: I did find it so funny how so few of them have jobs so they all need to exaggerate their titles.

Charlie being a crypto trader…

Kayla: Ariana saying she has an “online job.”

Drew: Me too Ariana me too

Kayla: Kind of obsessed with her boyfriend’s money being in CHICKEN

Drew: Lol YES

He was like my dad started this chicken restaurant. A new take on the nepo baby.

Kayla: Also she is smart to not let that man pay her rent for her! It’s clear she has seen the dangers of like over-relying on a man financially, via her mother.

Drew: As a Housewives fan, how did you feel about the ways the moms were incorporated?

Kayla: STRAP IN, LONG ANSWER INCOMING:

Ariana/Kim: Obsessed with Ariana immediately calling out her mom for stealing her money. That was juicy and real. I have friends who were former child actors who had the same thing happen to them. And then the fact that her mom is STILL contacting her for money! But then Ariana had this real empathy for her? Idk, it all felt messy and real in a way I appreciated. That’s a reality star in the making right there. You gotta air your dirty laundry!

Brooks/Meredith: This feels super insular/Housewivesy, but I’ve been so exhausted by Meredith lately on her show that I didn’t really need/want her here. She’s a weird one because she was my favorite when Real Housewives of Salt Lake City started, and she lost that title QUICKLY. If so much of Brooks’ arc on this show is supposed to be climbing out from her shadow, let’s see that! Less time with mom and more time with your girl friends…who are clearly standins for your mom LMAO I think he NEEDS a powerful femme force telling him what to do/solving his problems for him.

Gia/Teresa: Real Housewives of New Jersey is one of my RH blindspots, but I’ve seen/heard enough to know the basics, especially about Teresa since she has been around since the beginning. I love Gia’s commitment to living in Jersey and traveling in for the show/to socialize. Also I’ve heard from a lot of RHONJ viewers that there’s a real reverse-parenting situation happening with these two where Gia is way more of the parent and has been since a young age. Interested to see how that might play out here.

Riley/Kandi: I really appreciated how supportive Kandi was of Riley meeting up with Ariana. Kim ALSO stole money from Kandi via the song they made together, but it was forever ago, and I thought it was just nice and refreshing to hear Kandi be like yeah none of that is your business and actually just go forth and form your own relationship. I’ve been in situations where my relationships were impacted by drama between our mothers, so this actually really affected me in an unexpected way! And then Kandi sending Riley the photo of her and Ariana as kids was soooo sweet. I love Kandi, always have. And Riley is such a mini me for her. Her delivery of “I don’t even know what that show is” re:When Harry Met Sally was Kandi’s exact cadence lol.

Drew: Love this context. And interesting to hear that about Brooks and Meredith because the thing that blew me away was Brooks being like “oh yeah me and my mom are friends with her and her mom” and I was like wow the concept of having friends with your mom.

Kayla: Yeah I mean I do think he considers his mom one of his best friends, and that is always an alarming quality for me personally lol. But he also clearly wants a life outside her! She was REALLY in his corner when he was outed on Real Housewives.

Drew: Well that’s nice

Kayla: And viewers were REALLY mean about him in the first season of her show. I think they thought he was fair game since he was like 19?

Drew: I felt bad judging these people because they’re so young and they’re at least in their 20s!

As someone of queer boy with horrible male friends making comments about my sister experience, I just cannot imagine being like hey mom this is what my buddy said about my sister/your daughter.

Kayla: I do hate the extremely Reality TV thing of like “we’re going to retell the same story over and over and over and over again” and that’s honestly my main complaint about these first two episodes. We talked about/recapped the Charlie text TOO much. It’s part of the formula for sure, and at least it did eventually lead to that incredible line from Ariana’s boyfriend about Charlie’s corduroy pants:

Immediately entering the lexicon.

But yeah I would have liked to spend more time getting to know Emira a bit more. Or Ava. I was interested in some of Ava’s stuff with her father! I’m so appalled by parents who put their kid between them in their marriage/divorce — seems like she has been dealing with THAT her whole life!

Drew: Ava and Emira are the only two actually doing something (plus Dylan)!

Kayla: I feel for Ava because I hate when people treat modeling like it’s not real work, when it’s super hard work! She doesn’t have health insurance! lol

Drew: I really liked the scene with them camping aka having a picnic in Central Park. When Emira was talking about how Charlie and Ava are friends who would be good together I was like oh man does Georgia have a movie rec for you!

Kayla: Georgia was really trying to make When Harry Met Sally happen for her fellow Gen Z-ers

“Who’s Ben Affleck?” also really got me.

Drew: The producer chiming in after that killed me.

Kayla: Do you think you’ll watch more? I know reality TV isn’t your thing.

Drew: I do not think I’ll watch more, but if we were hanging out and you put it on, I’d be like omg my old friends!

Kayla: In many ways, a perfect way to watch reality television

Drew: This is how I feel whenever people from the new NY cast pop up after watching two episodes with you. Oh yeah we go way back.

Kayla: At least that has TWO lesbians in it (three if you count Mel, and we should all count Mel).

Drew: Zero people from The Valley left an impression though sad to say

If they’ve been popping up, I have not noticed.

Kayla: That’s very fair. I think that show was also hard for you in terms of being a little too familiar with those types of people in that area

Drew: Lol yes.

And speaking of familiar I’m also IN NEW YORK so theoretically I could see the Next Gen people around. Just last week I was in the West Village and on my walk from Stonewall to Cubby I was like……. when did the West Village become all straight people in their twenties

Kayla: I did genuinely love watching them walk 20 minutes from a bar to a club in Brooklyn

Drew: The most relatable moment of the show so far.

Kayla: Putting the real in reality TV.

Bravo’s Next Gen NYC is now streaming on Peacock.

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If you are a parent, your mission is clear: develop into a rich Bank of Mom & Dad to save your children. Without your financial support, they might never launch. If you don’t have wealthy parents yourself, then unfortunately, life might stay on hard mode forever. It’s up to you to break the cycle for your next generation, if they need your help.

Ever since I started working on Wall Street in 1999, I’ve seen wealthy parents buy their children everything—from condos to cars to groceries. I saw this firsthand with my peers at Goldman Sachs.

While I was sharing a studio apartment with a high school friend and later a co-worker, some of my peers were getting $500,000–$750,000 condos from their parents. Instead of wearing ill-fitting suits from Century 21 like I did, they had tailor-made Armani. I was impressed… and a little jealous.

But more than anything, I was motivated. Working in Manhattan opened my eyes to what generational wealth can do. And now, as a parent myself, I see even more clearly how important it is to become wealthy enough—not just for my own peace of mind, but for my children’s future opportunities.

Rich Banks of Mom & Dad Are Thriving

In my post, Income And Net Worth Required To Purchase A $10 Million House, one reader commented:

“The Bank of Mom and Dad phenomenon is so frustrating for those of us who have mostly earned everything… The few I know who ended up in a $10 million house in this situation still work pretty regular jobs… and they’ve traded up over the years. So I guess they get a little credit for making the best of their very nice birthright.”

It can feel annoying when your friends or peers are wealthier simply because of who their parents are. Even more irksome is how shameless many adult children seem about accepting help. There’s rarely any embarrassment. Nobody hides the fact they live in a $3-$10 million home bought by mom and dad, instead they throw parties and flaunt it on social media.

Only Three Ways to Stop Parents From Paying for Their Adult Children

One way to end the rich Bank of Mom and Dad phenomenon is for adult children to start refusing help and insist on making it on their own. But let’s be honest—that’s not going to happen. If free money is available, most people will take it. As a result, the trend will likely continue—and even accelerate—as more wealth is passed down.

Another way is for parents to start saying “no” to financial requests or stop offering help altogether. But when you have more money than you can spend in a lifetime thanks to investing for decades in the greatest bull market, that’s unlikely too. Love, guilt, and the desire to leave a legacy often outweigh ideals about financial independence.

The final—and most unrealistic—way to stop the trend is for sellers to reject money from parents. Imagine requiring every buyer to swear under oath that they earned the money themselves—like checking ID before selling alcohol. Sounds absurd, right?

Because let’s face it: if you own a BMW dealership and a 28-year-old’s parents want to drop $100,000 on a luxury SUV, are you really going to say no? Of course not. Money is money. And trying to screen buyers based on where their funds come from could open the door to legal trouble.

I Sold My Home to the Bank of Mom & Dad—And Liked It

As a home seller, my goal was simple: get the highest price and ensure the smoothest transaction possible. I didn’t care if the money came from the Bank of Mom & Dad, as long as it was legitimate. If the parents offered $50,000 more than another offer without parental help—everything else being equal—I was going with the higher offer.

Taking less would have been irrational. That $50,000 matters to me as a parent working to become a rich Bank of Mom & Dad myself. Every dollar helps secure my own children’s future, if they need our help. I hope my kids will grow up to be independent adults, however, I also appreciate having career insurance just in case they get rejected everywhere.

My buyers were a couple in their early 30s and worked in big tech, likely making $500,000 to $800,000 total a year. But what sealed the deal was their 100% down payment—courtesy of one of their dads, who was willing to pay all-cash. He sent a letter from his bank verifying he had at least X million in funds.

As part of their preemptive offer, the buyers waived all contingencies (financing, inspection, insurance, etc.) and agreed to a 10-day close. In the end, the transaction took 13 days because the escrow company needed extra time to verify the cash source. Still, it was the easiest real estate deal I’ve ever done.

So thank you, rich mom and dad! You crushed it—saving and building wealth to support your son, daughter-in-law, and grandchild. And in the process, you helped me and my family simplify life and get liquid again. Respect.

And as one commenter smartly pointed out, the adult children always have the option of paying back their parents. For honor’s sake, it’s a good idea since the children earn a top 1% income.

How to Compete in a World Fueled by the Bank of Mom & Dad

Imagine not making $500,000+ working in tech. How are you going to afford a $1.8 million median home in the San Francisco Bay Area without help? You’re not.

The reality is, you’re not just competing against dual-income households making half a million dollars or more a year. You’re also up against their parents—wealthy, generous, and ready to help with down payments or all-cash offers.

And if that’s not enough, you’re also competing against international money. In global cities like San Francisco and New York, real estate also faces an international demand curve. My buyer’s dad wired money from Asia to close the deal.

If you didn’t grow up with wealth, you’ll have to play the game differently. Yes, the rules may seem unfair, but that doesn’t mean you can’t compete and win. Here’s how:

1. Accept the Game, Don’t Hate the Players

It’s easy to feel resentful when others get a massive head start. But resentment is wasted energy. Use it as fuel to work smarter, save more aggressively, and build wealth on your own terms. Use my psychological trick and tell yourself, “Everybody is richer than me, why not me too?”

Life isn’t fair and the sooner you accept this reality, the better. I could have spent my time complaining about how much harder life can be as a minority navigating a country filled with implicit biases. Instead, I chose to work as hard as possible to achieve financial independence sooner, so I could live life on my own terms.

2. Invest In Yourself Relentlessly

Education, skills, and social capital are your tools. Beware of competing with the person who continuously self-educates. Subscribe to the free Financial Samurai weekly newsletter. Purchase a copy of my USA TODAY bestseller, Millionaire Milestones. The amount of inexpensive educational resources out there are endless. Please take advantage.

The wealthy may have capital, but you can close the gap with hustle, adaptability, and strategic thinking. Many children from wealthy families squander their advantages because they take their good fortune for granted. View these lapses in judgment as your opportunity to get ahead. Network, negotiate, and never stop learning.

3. Use Other People’s Money Smartly

If you didn’t inherit money, learn to use leverage wisely. Real estate is one of the few asset classes where everyday people can build wealth using other people’s money—namely, the bank’s. It’s my favorite wealth-building vehicle for the average person because of its forced savings component, relative stability, income potential, tax advantages, and long-term capital appreciation.

At the same time, stay consistent with investing whatever you can into the S&P 500 with each paycheck or financial windfall. Over the long run, it’s tough to beat the simplicity and returns of the overall stock market. Just make sure you don’t get shaken out by market volatility. Instead, build the discipline to buy the dips and stay the course.

Investing aggressively over the long run is one of the best ways to build generational wealth.

4. Avoid Lifestyle Creep

Your peers may drive nicer cars or live in nicer homes thanks to their parents, but don’t fall into the trap of trying to keep up. You don’t have wealthy parents, so you cannot afford to act like them. Stay in your lane!

Save and invest the difference. Compound interest will be your ally while their spending habits become liabilities. Take satisfaction knowing you are living according to your values and within your means. Nothing can take away the honor of earning what you deserve.

5. Improve Communication With Your Parents

Whether you realize it or not, most parents would do anything to see their children happy. Sadly, many adult children drift away, and over time, the strong bonds built in childhood begin to fade—making it harder to ask for support out of the blue.

Now imagine seeing your parents once a month and checking in weekly by call or text. Even though you’ve moved out, your relationship deepens as an adult. It’s a new type of relationship formed through mutual respect. They feel appreciated, proud of who you’ve become, and connected to your life.

In this kind of relationship, asking for financial help doesn’t feel awkward, it feels natural. And your parents will likely be even more willing to help because they remain an active, valued part of your life.

6. Start Building Your Own Bank Of Mom & Dad Today

Whether you have kids now or plan to, think long-term. Build a portfolio of assets that generate passive income. Open custodial accounts and Roth IRAs for them. Teach your kids about money and how to work hard for it. Help them graduate debt-free and buy their first homes.

Break free from the cycle of only thinking about your own financial well-being. Start thinking in terms of generational wealth. The goal is to be in a position to help your family if and when they need it.

Ironically, if you can make your kids millionaires by their 20s, you may not need to help them much at all. When they are set for life, observe how your anxiety fades away.

Banks of Mom & Dad Are Only Going to Grow Bigger

You may not be able to stop the Bank of Mom & Dad from growing, but you can become a great bank for your own children. And once you do, you’ll realize that helping your kids doesn’t mean spoiling them. It means giving them a fair shot on an increasingly uneven playing field.

Accept that:

• Parents will never stop loving and wanting to help their children.

• Adult children will rationally swallow their pride and accept financial help from their parents.

• Asset owners will always sell to the highest, most reliable bidder.

The Bank of Mom & Dad isn’t going away, it’s only getting richer and more ubiquitous. Instead of resisting it, it’s time to accept its rise and adapt. Whether you’re a parent or a child, understanding this powerful financial shift could shape your family’s future for generations to come.

Readers, how have you seen the Bank of Mom and Dad affect you and your children? Do you think there’s any way parents will stop financially helping their adult children, or that adult children will stop accepting money from their parents? Can we blame our parents for not saving and investing consistently during the greatest bull market of our lifetimes? What are you doing to ensure your children get a fair chance to compete?

Invest in AI for Your Family’s Future

One of my biggest concerns is that AI might eliminate millions of jobs—including the ones my kids and your kids may one day pursue. To hedge against this risk, I’m actively investing in AI-focused companies, both public and private.

That’s why I like Fundrise Venture—an open-ended venture capital product with exposure to leading AI companies such as OpenAI, Anthropic, Anduril, Canva, and more. Around 75% of the fund is allocated to artificial intelligence, and you can start investing with just $10.

Most VC funds require $100,000+ and an introduction to join. Fundrise Venture gives you access to the future—without the gatekeeping.

Fundrise is a sponsor of Financial Samurai, and I’m an investor in Fundrise. Check it out and position yourself—and your kids—for what’s ahead.

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