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Generational curses or wealth?

Recently, I’ve reached out to several people, urging them to secure their families' future with life insurance. One of the most concerning cases involved a public servant, whose wife is a stay-at-home mom with two children. Despite expressing frustration over living paycheque to paycheque and struggling to improve his financial situation, he outright refused to invest in even the most affordable life insurance policy. In contrast, a well-established businessman approached me seeking additional life insurance coverage to ensure he could leave an inheritance for his children. This highlights a troubling reality – financial struggles often repeat themselves across generations. Whether it is living paycheque to paycheque, falling into debt or lacking vision for the future, these cycles can feel like an unbreakable curse. What is even more alarming is that some people may not even seek the knowledge or tools necessary to change their financial trajectory. Understanding generational curses in finance A generational curse in financial terms refers to the cycle of poor money management, financial instability and the absence of wealth-building habits passed down from one generation to the next. Surprisingly, these patterns are not the result of life's unfairness or bad luck but stem from a lack of financial education, poor planning and deeply ingrained attitudes toward money. Some common financial generational curses include: · The belief that wealth is only accessible to a select few. · Relying solely on earned income without exploring wealth-building opportunities. · A lack of savings or financial safety nets within families. · A culture of excessive spending rather than focusing on long-term financial growth. · Passing down debt instead of assets. Without proper intervention, these patterns can continue indefinitely, affecting not just one family but entire communities. Breaking the cycle with financial planning The good news is that generational curses can be broken and often more easily than we may realise. [caption id="attachment_1141182" align="alignnone" width="910"] -[/caption] Financial planning – through budgeting, investing and purchasing insurance policies – offers a clear path to long-term financial security and the creation of generational wealth. Let us explore some ways in which financial planning can create generational wealth. Power of insurance One of the most effective ways to break financial curses is by purchasing insurance policies. Life insurance, in particular, ensures that wealth is passed down to the next generation providing them with financial security and the resources to make further investments rather than struggling to make ends meet. Additionally, health insurance and critical illness coverage are essential, as they protect one's finances in the event of illness, ensuring that unexpected medical expenses don't derail financial stability. Building financial literacy A key factor in breaking generational curses is financial education. By teaching children and young adults the importance of budgeting, saving and investing, we equip them with the tools to make smarter financial choices. Creating a wealth-building mindset Rather than focusing solely on earning and spending, families should adopt a mindset of building wealth. This includes: · Investing in assets that grow over time. · Creating multiple streams of income. · Planning for retirement early. · Teaching the next generation about financial independence. Will you take the first step to break the cycle? This column by Nutan Ragoobir, a senior insurance professional, author and founder of the Girmitya Foundation, will appear bi-monthly in Business Day.   The post Generational curses or wealth? appeared first on Trinidad and Tobago Newsday.