Thriving Families
Wilkinson believes that a truly enduring family legacy is built on much more than the accumulation and transfer of financial wealth.
Mitigating the Pitfalls of Financial Inheritance with the 5 Forms of Capital
While material riches may provide comfort and opportunity, they alone are insufficient to secure a meaningful and lasting family legacy. Many families fall into the trap of viewing wealth as the primary measure of success, only to discover that this focus often leads to unintended consequences, such as entitlement, conflict, or a loss of purpose among future generations. When financial capital is prioritized at the expense of deeper values and connections, it creates a fragile foundation that is vulnerable to erosion over time. In fact, Lonnie Gienger says it best, “A loss experienced in financial capital over the generations is usually preceded by a loss in one of the other four forms of non-financial capital.” A legacy that endures must also encompass the intangible yet vital elements that define a family’s identity, foster unity, and ensure a healthy posterity.
A key pitfall of prioritizing financial wealth alone is the neglect of spiritual capital—the essence, faith, and guiding principles that anchor a family. Spiritual capital provides a sense of purpose and direction, building harmony around shared values and vision.. Whether it’s faith in God, a commitment to ethical living, or a sense of moral accountability, this form of capital helps preserve the family’s spirit and character amidst life’s challenges. Without it, financial wealth can become hollow, leading to disconnection, entitlement, or a lack of purpose. Wilkinson aims to help families identify and cultivate this spiritual richness, ensuring that future generations inherit more than just assets—they inherit a shared sense of meaning.
In addition to spiritual capital, families must also focus on developing human capital—the skills, talents, and intellectual capacities of each family member. This includes education, mentorship, and personal growth, as well as developing entrepreneurship, fostering a culture of curiosity and lifelong learning. By investing in human capital, families empower future generations to not only preserve their wealth but also to innovate, adapt, and thrive in an ever-changing world.
Similarly, societal capital—the family's commitment to making a positive impact on their community and society at large—is a vital component of a meaningful legacy. Encouraging charitable giving, civic involvement, and social responsibility through business and investments ensures that a family’s influence extends beyond its immediate circle, contributing to a better world for all.
Finally, relational capital is the glue that holds everything together. This refers to the quality and depth of relationships within the family and with others outside of it. Strong communication, mutual respect, and a commitment to resolving conflicts are crucial for fostering unity and trust across generations. Wilkinson is passionate about helping families master the art of relational capital, believing that it is the cornerstone of a thriving legacy.
Now where does financial capital fit in? The ultimate purpose of financial capital is to provide resources to support the other four forms of capital. Intentional deployment of financial capital to develop the other capitals makes for a flourishing, thriving life and family for generations.
By encouraging individuals and families to pursue continual growth in these five forms of capital—spiritual, human, societal, and relational—alongside financial wealth, Wilkinson hopes to help more families build enduring legacies that reflect their true values and aspirations.
What You Can Do Next
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