"Affluenza," poor communications take some of the pleasure out of wealth. The term "affluenza" - the phenomenon of wealth as a source of stress and unhappiness in family matters - is old hat to just about everyone in the wealth-advisory business. But this familiarity shouldn't desensitize advisors to the importance of the malaise, according to a report issued by PNC Financial Services earlier this month.

Four out of 10 affluent parents think their minor children consider affluence a birthright. A quarter of those surveyed - nearly 1,500 U.S. adults from households annual incomes of $150,000 or above (if employed), at least $500,000 of investable assets (if employed) or at least $1 million of investable assets (if retired) - say their wealthy backgrounds will discourage their children from working hard.

Worry and woe

"There is a responsibility that comes with having money and a sense of stewardship that should be part of the family culture," said Bruce Bickel of PNC Wealth Management. "It is the elephant in the room that, if ignored, can become a destructive and even divisive force," he adds. "If families don't deal with their concerns, they are left with only worry and regret."

The study also found that many parents were not involved in preparing their kids to shoulder wealth responsibly, take after-school jobs, or help out in the community. Nearly a quarter of parents aged 65 and over planned to keep the size of their fortunes secret from their offspring. Only a third of the respondents had ever even talked about budgeting with their children let alone broached any of the more intricate ramifications of family wealth.

But well-to-do parents are well advised to keep their minor children firmly in the loop by helping them understand how the family shepherds and manages its financial resources, week-to-week and across generations.

"Wealth planning and estate planning are critical to these discussions and so important to raising kids, caring for aging relatives and protecting family assets," says Bickel.

In the long run, that kind of openness can help avoid another problem that preys on the minds of the wealthy parents: whether their kids will help look after them in their old age. As matters stand, however, only four in 10 participants considered providing financial support to elder family members an "important family financial goal." -FWR

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