The Jelly Bean Test

Written By Bonnie

Statistics show that 70% of wealthy families lose their fortune by the second generation, and 90% lose their fortune by the third generation.

The Jelly Bean Test can be a great way to help young ones learn the value of deferred gratification. I’ve also heard this called the marshmallow test, so it can be done with anything you see fit.

Here are a few other tips to help ensure your children do not squander their money away:

  1. Help children focus on experiences rather than things.

  2. Do not go out to eat so much that your children do not appreciate it anymore, or do not do something so much that it is not special anymore.

  3. Spend money on someone else.  As the saying goes: It’s better to give, than to receive.  By letting your children see how you use money and your resources to help others, you will leave a deep lasting impression on them.

Follow the HELPING OTHERS and LEAVING A FINANCIAL LEGACY page for more ideas to help ensure all the hard work that went into building your fortune is not lost by the second or third-generations.

Bonnie

I feel we are all students of one another, learning from each other’s strengths and weaknesses. I am not a financial advisor, but I am continuously learning on my journey to become financially independent, and I’m passionate about teaching others how to do the same. Come learn with me so we can live our best lives and then spread our wings to help others do the same

“Reach one, teach one, and repeat. If the world did this, we would be a much better place.” - Rudy Martinez (Alaska Prepper)

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