{"id":30355,"date":"2025-03-12T14:54:43","date_gmt":"2025-03-12T14:54:43","guid":{"rendered":"https:\/\/www.wallstreetzen.com\/blog\/?p=30355"},"modified":"2025-07-07T20:15:22","modified_gmt":"2025-07-07T20:15:22","slug":"how-to-build-generational-wealth","status":"publish","type":"post","link":"https:\/\/www.wallstreetzen.com\/blog\/how-to-build-generational-wealth\/","title":{"rendered":"How to Build Generational Wealth: 5 Ways to Secure Your Family’s Financial Future"},"content":{"rendered":"\n

I want to live a comfortable life. I also want to do what I can to ensure a comfortable life for my children \/ future generations. Can you relate? <\/p>\n\n\n\n

If you answered yes, let\u2019s get to the important business of how to build generational wealth<\/strong>. <\/p>\n\n\n\n

In this article, I dig into the art and science of how to create generational wealth, from how to start to how to continue building family wealth for years to come. <\/p>\n\n\n\n

But first\u2026<\/p>\n\n\n\n

What is Generational Wealth & Why is it Important?<\/strong><\/h2>\n\n\n\n

Before we dig into ways to create generational wealth, let\u2019s talk about what it is and why it matters.<\/p>\n\n\n\n

Generational wealth refers to financial assets, property, or investments that are passed down from one generation to the next. Simple as that. <\/p>\n\n\n\n

The idea is that by building wealth and accumulating assets that you can pass on, you\u2019ll build a comfortable foundation not only for yourself but also for future generations. This can help break cycles of struggle and allow future generations to pave a more comfortable path in life. <\/p>\n\n\n

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Enabling you to make smarter investment decisions…<\/em><\/p>\n

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How to Build Generational Wealth<\/strong><\/h2>\n\n\n\n

Now that you understand what it is, let\u2019s talk about ways to create generational wealth. <\/p>\n\n\n\n

1. Pay Off Debt<\/strong><\/h3>\n\n\n\n

High-interest debt is like a noose \u2026 you must get it off your neck! <\/em><\/p>\n\n\n\n

Any debt with a high interest rate can cost you hundreds of dollars in interest alone \u2014 and it can compound over time, keeping you in debt and keeping you from growing your net worth. <\/p>\n\n\n\n

This can erode your financial potential and limit your ability to build a financial foundation.<\/p>\n\n\n\n

So if you have debt, reducing it is precisely how to start building generational wealth. After all, you might actually earn a higher \u201creturn\u201d by paying off a debt with a 10% (or higher) interest rate. <\/p>\n\n\n\n

Putting together a debt payoff plan is the best way to become debt-free. One of the best ways to make a plan and stay on track is with a tool like Empower<\/a>. <\/p>\n\n\n\n

Get used to the name, because I\u2019m going to mention Empower a few times in this post. That\u2019s because it\u2019s loaded with FREE tools to help you save and invest smarter \u2014 both of which are crucial for building generational wealth. <\/p>\n\n\n\n

Specifically related to paying off debt, Empower\u2019s free dashboard has a Debt Payoff Calculator<\/a>, which lets you enter all of your current loans and interest rates and allows you to build a plan for paying it off. <\/p>\n\n\n

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\"Debt<\/a><\/figure><\/div>\n\n\n

I can\u2019t recommend this tool enough if you\u2019re struggling with debt. I know it\u2019s not as fun as some of the other tips in this post, but you\u2019ve got to start here if you want to build generational wealth.<\/p>\n\n\n\n

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Get ahead of high-interest debt with Empower\u2019s free tools<\/strong><\/a><\/div>\n<\/div>\n\n\n\n

2. Start Saving<\/strong><\/h3>\n\n\n\n

Starting to save early is essential for building generational wealth because it allows your money to grow through the power of compound interest over time. <\/p>\n\n\n\n

Seriously, even small, consistent contributions can add up and compound over time. This makes saving an important part of creating a financial foundation. <\/p>\n\n\n\n

Here\u2019s how I suggest getting started: <\/p>\n\n\n\n

Set Up a High-Yield Savings Account<\/strong><\/h4>\n\n\n\n

One of the easiest ways to start saving \u2014 and earning compounding interest<\/a> \u2014 is to set up a high-yield savings account. <\/p>\n\n\n\n

Personally, I like maintaining high-yield savings in an account where I can also invest. If you like that idea too, I suggest checking out Public<\/a>. <\/p>\n\n\n

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\"One<\/a><\/figure><\/div>\n\n\n

Public is an all-in-one investing platform. For me, its high-yield cash account was the gateway since it offers one of the better APYs out there, and you get daily updates on how much you\u2019ve earned.<\/p>\n\n\n\n

(Note: Public\u2019s is not a high-yield savings account \u2014 it\u2019s a high-yield cash account, so your money is swept to partner banks. But it\u2019s still FDIC insured, which is what matters most to me.)<\/p>\n\n\n\n

Once you have a nice little nest egg built up, you can also invest right on the Public platform<\/a>. As for what you can invest in, you\u2019ve got options.<\/p>\n\n\n\n

You can invest in stocks, ETFs, crypto, and even assets that are hard to find on other brokerages, like T-bills and their nifty Bond account<\/a>, which allows you to invest in high-quality bonds within a single investment. (Currently, that Bond account yields over 6.8%.)<\/p>\n\n\n\n

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Get started on Public<\/strong><\/a><\/div>\n<\/div>\n\n\n\n

<\/p>\n\n\n\n

Save For the Future<\/strong><\/h4>\n\n\n\n

Maintaining savings that you can dip into at any given time is great. But if you want to get serious about building generational wealth, you\u2019ve got to adopt a longer mindset. <\/p>\n\n\n\n

For most people, there are two key areas to consider when saving for the future:<\/p>\n\n\n\n

Save for Future Generations<\/strong><\/h4>\n\n\n\n

If you have children or are planning to, now\u2019s the time to start saving for their education and\/or future. <\/p>\n\n\n\n

There are a variety of ways to do this. One way is to open a 529 account (a tax-advantaged savings plan designed to help pay for education expenses).<\/p>\n\n\n\n

Another way is to open an UGMA\/UTMA account, which is a custodial account that lets you transfer financial assets to a minor, who gains full control of the funds upon reaching the age of majority. It has fewer restrictions than a 529 plan.<\/p>\n\n\n\n

For the latter, I strongly recommend an Acorns Early account<\/a>. <\/p>\n\n\n\n

It\u2019s an UGMA\/UTMA investment account within the Acorns app that lets you invest for a child’s future, featuring automated investing \u2014 the money is automatically invested for you into a diversified portfolio. (P.S. Acorns also has a retirement account if you want to invest for your future, too.)<\/p>\n\n\n

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\"Accorn<\/a><\/figure><\/div>\n\n\n

You can also link up Acorns to your debit card and round up the change on everyday purchases, which is then deposited into your investment account. This Round-Up feature<\/a> is a great way to start saving on the sly \u2014 you probably won\u2019t miss the rounded-up 52 cents when you buy a latte, but over time these micro-investments add up.<\/p>\n\n\n\n

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Get started on Acorns and get a $20 bonus<\/strong><\/a><\/div>\n<\/div>\n\n\n\n

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Save for Retirement<\/strong><\/h4>\n\n\n\n

Do your future self a solid and save what you can for your golden years. This will ensure that your assets aren\u2019t depleted later on, so you have something to leave <\/p>\n\n\n\n

For one, if you have a 401(k), try to contribute all you can \u2014 especially if your employer has a matching program. <\/p>\n\n\n\n

Additionally, if you don\u2019t already have one, open an IRA. There are a few different types of IRAs \u2014 a Traditional IRA, Roth IRA<\/a>, Simple IRA, Sep IRA, or Best Self Directed IRA<\/a>. Choose an IRA that is aligned with your goals \u2014 if you\u2019re looking for an excellent provider, check out Empower\u2019s available options<\/a>.<\/p>\n\n\n\n

Estate Planning<\/strong><\/h4>\n\n\n\n

Nobody likes thinking about death, but you\u2019ll do your family a solid for the future by taking care of the nuts and bolts. <\/p>\n\n\n\n