Planning for your financial future and the legacy you leave behind can feel overwhelming, but it doesn’t have to be. Whether you’re thinking about passing down a home, a business, or other valuable assets, the path to building generational wealth starts with clear communication and strategic planning. In this episode of Banking Matters, banker Ajla Zigic breaks down the essential first steps to securing your legacy for generations to come.
Have you ever thought about the financial legacy you’ll leave behind for your children or grandchildren? For many families in St. Louis, the concept of building wealth that lasts beyond one lifetime might feel out of reach. But the truth is, generational wealth isn’t just for the ultra-wealthy; it’s something any family can begin building with the right strategy and guidance.
Generational wealth refers to assets, like real estate, business ownership, savings, or investments, that are passed down from one generation to the next. More importantly, it’s about creating long-term financial security and opportunities for your family’s future.
At Midwest BankCentre, we believe that building generational wealth starts with a conversation. Whether you’re buying your first home, running a family business, or planning for retirement, your decisions today can impact the well-being of future generations.
What Is Generational Wealth?
Generational wealth refers to any financial assets passed down from one generation to the next. These can include real estate, investment portfolios, retirement savings, businesses, or even life insurance policies. It’s not just about money; it’s about giving your family a foundation to build on.
The goal of generational wealth is simple: to give your children and grandchildren a financial head start. Whether it helps them pay for college, purchase a home, start a business, or simply avoid debt, the assets you leave behind can create lasting stability and opportunity.
But generational wealth isn’t just personal. It also plays a role in building stronger communities, especially in cities like St. Louis, where empowering more families to build wealth can help close historical financial gaps and create a ripple effect for future generations. At Midwest BankCentre, we view generational wealth as more than a transfer of money. It’s a mindset rooted in planning, protection, and purpose.
How to Build Generational Wealth
Building generational wealth isn’t something that happens overnight. It starts with clear goals, trusted guidance, and intentional decisions made over time. While every family’s journey is different, here are some foundational steps to help you begin:
1. Talk to a Trusted Advisor
The first step is to have an open conversation with a financial professional or banker who understands your goals. At Midwest BankCentre, we help individuals and families map out long-term financial plans that align with their values and vision for the future.
Whether you’re just starting to save, purchasing your first home, or thinking about passing on a business, having an expert in your corner makes all the difference.
2. Create a Financial Plan
Once you know your goals, it’s time to create a plan. This might include:
- Setting up savings and investment accounts
- Purchasing life insurance
- Establishing a will or trust
- Building emergency funds
- Reducing debt to protect future assets
Planning not only ensures your wealth grows, it protects it from risks that could derail your legacy.
3. Identify Assets That Can Be Passed Down
Generational wealth isn’t limited to cash. Consider what assets you can build or preserve over time:
- Real estate (such as a home to pass to your children)
- A family business with a clear succession plan
- Investment portfolios or retirement accounts
- Life insurance policies with designated beneficiaries
These assets, combined with financial literacy and planning, can provide security and opportunity for generations to come.
Why Generational Wealth Matters (and Who It’s For)
Generational wealth isn’t reserved for the ultra-wealthy or elite; it’s for anyone who wants to create financial security that lasts beyond their own lifetime. Building generational wealth is one of the most powerful ways to break cycles of financial instability and empower future generations with choice, opportunity, and resilience.
It Helps Your Family Thrive, Not Just Survive
When your children or grandchildren inherit financial assets, like a home, business, or investment fund, they’re better equipped to pursue education, start a business, buy a home, or weather unexpected financial challenges. Instead of starting from zero, they’re building on a foundation you created.
It Strengthens Communities Like St. Louis
In cities like St. Louis, generational wealth plays a critical role in creating long-term community impact. When more families have the resources to invest in their futures, it leads to greater homeownership, small business growth, and local economic stability.
It’s About Legacy, Not Just Money
At its core, generational wealth is about the legacy you leave behind, what you teach, and how you prepare the next generation. It’s a chance to pass on not just assets, but values like discipline, generosity, and financial literacy.
Examples of Generational Wealth in Action
Generational wealth can look different for every family, but the impact is always meaningful. Below are some common real-world examples of how families build and pass on wealth across generations:
Passing Down a Family Home
One of the most traditional forms of generational wealth is homeownership. A paid-off home can be handed down to children or grandchildren, saving them from the burden of rent or mortgage payments and giving them a strong financial foundation.
Local Example: A St. Louis family who owns property in South County may pass that home to their children, enabling them to start adulthood without the pressure of buying or renting in a competitive market.
Building a Family Business with a Succession Plan
Small businesses are a powerful source of wealth. When structured properly, a business can be passed on to children, creating jobs and income for future generations. A well-crafted succession plan ensures a smooth transition of ownership when the time comes.
Investing for the Long Term
Investment accounts, like 529 education savings plans, IRAs, or brokerage portfolios, can grow over time and be used to support future educational or retirement goals. With the power of compounding interest, starting small can yield significant results.
Life Insurance and Estate Planning
A properly structured life insurance policy or living trust can provide tax-efficient transfers of wealth, ensuring that your family is protected and your wishes are honored.
Start Your Wealth-Building Journey with Midwest BankCentre
Building generational wealth doesn’t require perfection; it requires a plan, a trusted partner, and the willingness to start. Whether you’re just beginning to think about your financial future or ready to take the next big step, Midwest BankCentre is here to help. Our local bankers understand the unique challenges and opportunities facing St. Louis families. We take the time to learn your story, your goals, and your values, then help you craft a customized plan to grow, protect, and pass on your wealth.
From setting up savings and retirement accounts to discussing estate planning and business succession, we offer personalized guidance for every stage of life. And because we’re rooted in the St. Louis community, we’re here to support you not just today, but for generations to come.