Four Ways to Nurture “Next Gen” Engagement in the Family Office

May 1

In the next twenty years, an estimated $72 trillion will be passed down from Baby Boomers to Generation X, Millennials, and Gen-Z in what has been dubbed the Great Wealth Transfer. Against this backdrop, top of mind among family offices is the question of how to involve the next generation, an important yet complex process with no silver bullet solution. Nonetheless there are several concrete ways families can encourage engagement and nurture genuine interest (without forcing it).

Why is This So Hard?

So why exactly is it so challenging to foster next gen engagement? One issue that can arise is when the older generation unintentionally limits meaningful involvement by younger family members, often out of a deep sense of responsibility for what they’ve built. Paul Edelman, a coach and advisor to enterprising families, notes that younger family members may question their readiness to contribute, particularly if senior family members maintain close control over decision-making. “Without deliberate efforts to build confidence and a sense of real contribution, younger family members may hesitate to engage or participate only peripherally,” Edelman explains.

Furthermore, inheritors of wealth often face unseen struggles that hinder their ability to both discover and capitalize on their unique strengths and potential. Kristen Keffeler, a leader in the space of wealth management and positive psychology, explains in The Myth of the Silver Spoon, that individuals born into wealth can struggle with underdeveloped identities, an intense fear of failure, personal shame, overwhelming pressure to succeed, and social isolation, to name a few. (It is important to recognize that inheritors have been granted an immense level of privilege, but recognizing this privilege should not obscure the very real psychological challenges that can accompany inherited wealth). Strained family dynamics can have a multiplier effect and further complicate the path toward both personal fulfillment and greater involvement in both the family office and family at large.

Finally, a key challenge and likely one of the most common, is that next gen members may simply not be interested in becoming involved in the family office. Young individuals, particularly in their 20s and 30s, are working hard to uncover their own identities, passions, and career interests while building out their social networks. This development is critical for building the foundations for a successful and fulfilling life. Participating in the office simply may not be a priority for them at this point, and that’s ok.

However, this is not to say that the interest will never surface; they just need time to focus on themselves and their own journey, for now. ONE WORLD CEO Scott Saslow writes in Building a Sustainable Family Office: “If you are trying to encourage the next generation to join your family business or even the family office, strong-arming or criticizing their choices is unlikely to convince them. You may just run them off. Instead, let them live their own lives. Encourage them to get experience and to learn about their future path, whether that’s in your own company or not. If you love them, set them free.”

Fostering Confidence, Empowerment, and (Potentially) Interest

So we know it’s essential to let the next gen live their lives and uncover their identities and passions, but that’s not to say a completely hands-off approach is the right strategy either. There are certainly ways to help create a supportive, healthy environment for the younger generation that is amenable to greater involvement in the family office without forcing it. The key here is to proactively offer support and optional, helpful resources and opportunities (without pressure) so that when next gen members feel ready, and if they’re interested, they know they have avenues available to them for educating themselves and getting involved.

1: Community

Given the issue of shame and isolation that inheritors of wealth can face, it can be very beneficial to help younger family members connect with fellow next gens who understand what it’s like to be in their position. One avenue is through formal community groups like Enclave, Nexus, In Three Generations’ Rising Gen Collective, or Wellth Works’ Launch Program.

Enclave founders Jake Knight and Marc Hodulich note that “after attending dozens of similar [rising gen]** events over the years, it became clear to us that what was missing in the space was a community dedicated to connecting Rising Gens to one another. A tribe of people faced with similar challenges and opportunities, connected by an organization that emphasized the development of each individual by helping them define their purpose and path forward.” Through a peer network, roundtables, discussions, and retreats, members can share their knowledge and experience, ask questions, seek advice, and build connections. These kinds of spaces can offer a critical environment of support and understanding to next gens who may feel lost, alone, or stalled in their personal and professional journeys.

**The term “rising gen” is often used to emphasize the individuality and agency of inheritors of wealth and distinguish a proactive, growth-oriented mindset. For the purpose of this article, “next gen” and “rising gen” will be used interchangeably.

2: Education

Members of the next generation may also feel a sense of imposter syndrome and that they lack the relevant skills, experience, and knowledge to contribute to the family office in a productive way. This is where education becomes essential. There is no perfect, one-size-fits-all curriculum here, as educational needs will depend on the specific individual, their interests, and their current level of proficiency in relevant areas like accounting, finance, and estate planning.

There are plenty of options and resources - an overwhelming amount, frankly - out there to leverage for building competencies where they are needed. Some online programmatic learning resources designed specifically for current and prospective family office professionals include Tamarind Learning and Family Office Exchange’s E-Learning platform. Available courses range from Trust Fundamentals, Foundations of Tax, Personal Finance, Family Office Design, to Rising Gen Fundamentals, and more. These are great for those that prefer a more structured learning approach. Compiling and curating resources like these, or even just knowing they exist, is essential, for should a younger family member decide they would like to plug in, leaders can direct them towards courses that will build both their knowledge and confidence.

According to a Northern Trust survey of 55 families, 44% implement informal/ad hoc education, such as quarterly meetings with family and staff, attending industry conferences, personality assessments, and family business field trips. Another 44% utilize more structured, recurring learning approaches. One example includes beginning to teach young next gens (ages 8-10) about values, risk tolerance, and budgeting, and creating regular modules over time to explain taxes, trusts, budgeting, and more. Notably 12% had not developed any learning strategies yet.

3: Healthy Relationships

The strategies mentioned thus far are most effective when they rest upon a foundation of healthy family relationships and dynamics. Not everyone is fortunate enough to have a solid base to build off of, for any number of reasons. Relationships can be messy, painful, and stressful. Family is not always easy. The social and emotional elements of family wealth management may not receive as much attention in the wider discourse, yet dysfunction at this level can have a cascading effect that undermines wealth stewardship.

According to a 2024 JPMorgan family office survey report, some of the most popular governance methods used to promote family cohesion include regular whole family meetings (37%), family retreats (23%), written family history and/or storytelling (19%), family council (18%), and a family constitution (17%). For deeper issues beyond the scope of governance measures, involving a family coach or therapist such as Graddha or Flourishing Family can be an effective way to address underlying issues or tensions, promote communication, and foster greater cohesion.

4: Meeting Them Where They’re At

While community, educational tools, and family dynamics are key pieces for facilitating engagement and boosting confidence, generating genuine excitement is perhaps one of the most effective motivational factors for next gen engagement. Offering younger family members opportunities to contribute to areas they are passionate about - educational opportunities, tech innovation, sustainability, etc. - can instill both curiosity and enthusiasm in those who may otherwise be less inclined to take part. Sustainability concerns are particularly prevalent amongst the younger generations; a recent survey by Morgan Stanley showed that 96% of millennials and 85% of Gen Z are “very” or “somewhat interested” in sustainable investing. Entrepreneurship can also serve as a particularly enticing avenue that resonates with these groups by combining innovation, novel problem-solving strategies, and opportunities for growth.

Recognizing the next gen’s passions and unique interests and finding ways to incorporate these within the scope of the family office, even in small ways, can be an excellent strategy to help frame participation as an exciting opportunity rather than a high-pressure obligation. As Jake Knight of Enclave notes, “the Rising Gen becomes most energized when the family office is positioned as a space for personal growth, contribution, and alignment with their natural skills, interests, and values…Like any professional, Rising Gen members thrive when they feel their role has purpose, when they can grow personally and professionally, and when their work is tied to something greater than just financial outcomes.”

Closing Notes

There is no magic wand for a successful succession process, yet there are plenty of approaches that, when used in concert based on a family’s unique needs and context, can help pave the way for the effective participation of the next generation. You truly cannot and should not force it. A pragmatic approach includes creating a strong foundation of healthy family relationships; proactively offering opportunities for continued education; connecting the next gen to a community that understands the unique challenges they may face; and providing opportunities for younger members to explore their passions and interests within the family office setting. Welcome them and encourage them to connect in a way that makes sense for their life, desires, and aptitudes.