Why Rich Kids Should Get a Job

A psychiatrist I know who counsels rich kids on Long Island's north shore, a bastion of Old Money, says one of the first things he recommends is that they get a job.

The advice, he says, is not usually welcomed warmly. But eventually, he says, children from wealthy families realize they get much more fulfillment from being productive than staying idle.

Now a new study on those born with silver spoons in their mouths confirms this.

"Growing Up Wealthy," a study by PNC Financial Services Group, Inc. depicts an affluent youth culture that is "privileged yet more responsible, hard working and ambitious than the perception fueled by the antics of young celebrity socialites."

Hold on, Paris Hilton, what's going on?

"The results demonstrate that, even if these teens were born with a silver spoon in their mouths, they don't expect life to be handed to them on a silver platter," says Bruce Bickel, who provides financial counseling to families for PNC Wealth Management.

"We see a generation of wealthy young people who are generally well-grounded, willing to work hard and see eye-to-eye with their parents on important values like education and earning a living."

Eighty percent of the teens surveyed said they are willing to work for the things they want to purchase. Meanwhile, nearly two-thirds of those between the ages of 18 and 20 have a full-time or part-time job, which accounts for their spending money, according to PNC.

The survey polled 210 wealthy teenagers ages 14 to 20 and 272 affluent parents.

Although one in five wealthy teens said "I deserve to be rich because my parents are rich," more than half don't believe this is how it should be. When asked if they should be able to buy anything they want, 45 percent of wealthy teens said "No," while 25 percent said "Yes," and 29 percent said they were unsure.

Role Models?

What is sure, however, is that while rich parents talk a good game about wanting their children to get good jobs and be self-sufficient and financially aware, they themselves aren't such good role models.

Only 28 percent of rich parents said they had discussed the meaning of the family's wealth with their children. About 10 percent don't even talk about money.

"It is important to talk to teens about family wealth, but that conversation has to address the fact that wealth is not a right but a responsibility," Bickel says. "This is not happening as much as it should, as only half of our surveyed parents...said they give a 'regular allowance,' which is the first, most basic tool to begin teaching children about money and responsibilities."

Discussing money and responsibility with children is an increasingly important thing to do.

Why? Kids today feel more of a sense of entitlement than previous generations. A survey by a San Diego University psychologist and a more wide-ranging survey out of UCLA find that more college students expect and believe it's important to be well-off financially. Further, they believe they deserve to be rich.

Researchers believe the "narcissist" phenomenon dates to the 1980s when there was a movement to build self-confidence in young people. Now they say that may have gone too far.

The Internet too has played a hand in the self-centered nature of kids: it empowers them to do and think and educate themselves...now, now, now!

Indeed, the immediate-gratification attitude of this generation is posing a problem for Corporate America as well. How can young workers with technical abilities who are able to work virtually and on their own blend into a hierarchical management structure?

Coming of Age

Clearly, handling the Next Generation is posing issues; a work ethic however, doesn't seem to be one of them. What is an issue in the area of responsibility is accountability and counsel.

Nearly three-quarters of teens said they feel a strong sense of responsibility to manage wisely whatever money they receive from their family. But when adults were asked what steps have been taken to teach their children about money, only 27 percent said they discussed budgeting.

Born rich or poor, bad parenting never breeds success. The good news is that kids want to be successful. The bad news is that they aren't being given good advice on how to become successes in their own right. And they should be entitled to that.