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No two families are the same. While some adopt a conservative, savings-led approach to wealth, others prioritise experience, lifestyle, or even legacy-making through philanthropy and bold investments. As wealth passes from generation to generation, the diversity in financial behaviour only widens, and professional trustees are uniquely positioned to observe and adapt to these evolving preferences.
The age-old debate between spending and saving is no longer about right or wrong, it is about alignment. In a world of shifting values and priorities, trustees must help families find a balance that reflects their beliefs, goals, and intergenerational dynamics. While prudent stewardship remains a core principle, there is also growing recognition that wealth is, ultimately, meant to be lived – and enjoyed.
This article explores changing attitudes toward wealth across generations, the spectrum of behaviours trustees encounter, and how a modern approach to fiduciary services can support families, whether they are building capital, preserving it, or spending it freely.
The Shifting Mindset
Wealth is not static and neither are the values that shape how it is used. Across generations, we have seen a distinct shift in priorities:
The Founders (G1):
- Typically, self-made.
- Often conservative, with a focus on security, control, and capital preservation.
- May prioritise reinvestment or philanthropy over lifestyle spending.
The Next Generation (G2):
- Beneficiaries of established wealth.
- More inclined to embrace comfort, travel, education, and diversified investments.
- Often act as stewards, seeking balance between respect for the past and shaping the future.
The Millennials and Gen Z (G3+):
- Value experiences, sustainability, and self-expression.
- Comfortable with spending and more likely to question the purpose of inherited wealth.
- Often support ESG investing, entrepreneurial ventures, and social causes.
As wealth evolves, so do the questions: What is money for? Should it be preserved forever? Should it fund impact, innovation, or simply enjoyment?
From Gatekeeper to Guide – The Trustee's Role
Traditionally, trustees were seen as gatekeepers; ensuring that capital was not squandered and that fiduciary duties were upheld with caution. While this remains true in principle, the role has matured, and today's trustees must also:
- understand family values and individual aspirations;
- interpret modern letters of wishes and governance frameworks;
- act as financial educators and sounding boards; and
- balance duty of prudence with flexibility and humanity.
There is no "one-size-fits-all" rule for how families should spend their wealth. Trustees must adapt to families who:
- wish to provide fully for future generations.
- prioritise present enjoyment or philanthropy.
- require protection from spendthrift tendencies.
- want to enable entrepreneurship or risk-taking.
Ultimately, the trustee's job is not to judge, but to facilitate intention while ensuring that spending is aligned with the long-term objectives of the trust and the vision of the settlor.
Finding the Balance
Fiduciary duty often calls for prudence, but prudence does not mean saying "no" to spending. It means:
- understanding the long-term viability of the trust's assets;
- assessing the proportionality of distributions; and
- offering guidance, not restriction.
In many cases, spending is a valid and valuable outcome.
Funding education, starting businesses, making memories, or giving back through philanthropy all contribute to a life well-lived and a meaningful use of capital.
In fact, spending can serve a broader economic and social good. Ultra-high-net-worth/High-net-worth families often stimulate local economies through consumption and investment, employ people and support industries, and contribute to culture, arts, and innovation.
Trustees should consider not only financial sustainability, but emotional and social outcomes as well.
The Case for Enjoyment (Within Reason)
"You Only Live Once" has become a mantra for a generation that prioritises life experiences over balance sheets. And while it may sound frivolous, it carries an important truth – wealth is not just for storing, it's for living.
However, that doesn't mean throwing caution to the wind, it means designing structures that offer flexibility for evolving lifestyles, educate beneficiaries on wealth responsibilities, and encourage open discussions about money, expectations, and legacy.
Some of the most effective trusts are those that accommodate staggered distributions that grow with maturity, incentive clauses for education, entrepreneurship, or social engagement, and philanthropic arms that allow beneficiaries to give with impact.
The best trustees don't impose values, they help families articulate and honour their own.
Conclusion
In the world of private wealth, change is constant but purpose is timeless. Trustees today must be more than stewards of capital, they must be stewards of vision; helping families make meaningful decisions across generations.
There's nothing inherently wrong with spending wealth. When it is done with intention, whether for joy, growth, or giving, it becomes part of the family's story. Trustees who embrace this flexibility, while upholding their fiduciary duties, empower families to live fully, plan wisely, and leave a legacy that is as human as it is financial.
Whether a family is saving, spending, or somewhere in between, the goal is the same – to honour the wealth that came before and shape the life that lies ahead.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
