In 2006, Warren Buffett made a pledge to give away 99% of his wealth. According to Bloomberg's calculations, that would be roughly $65 billion.
This is a noble action, and one surely praised by most. But Buffett also has 3 children -- how do you think they feel about their father pledging away the family's unworldly wealth?
Well, believe it or not, they are perfectly fine with it. They have accepted their father's decision and have even begun to manage their own philanthropic endeavors.
How was Warren Buffett able to ease his children's concerns and avoid years of awkward Thanksgiving dinners? Communication.
As he explains in the video below, Buffett highlights why he takes to the time to walk his children through any changes he makes to his "last will and testament" before he signs it. This is in stark contrast to other wealthy families. 52% of parents with more than $3 million in investable assets have yet to fully disclose the depth of their wealth with their children and 15% haven't said a peep about it, according to U.S. Trust's Insights on Wealth and Worth study.
40% of people in that study were afraid their kids would make poor decisions or squander the money. These are valid concerns, but only if you do not take the time to educate your children and be transparent on the topic of money -- something Buffett has always stressed through his annual letters to Berkshire Hathaway shareholders.
If Buffett is taking the time to go through his $66 billion fortune with his kids, surely everyone can walk their families through their financial situation.
David Hanson owns shares of Berkshire Hathaway. The Motley Fool recommends Berkshire Hathaway. The Motley Fool owns shares of Berkshire Hathaway. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.