Financial analysts believe we’re on the cusp of the greatest generational wealth transfer in history. Baby boomers (those born between 1946 and 1964) are now poised to pass an estimated $68 trillion to their children after decades of growth in the housing and stock markets and saving through tools like IRAs and 401(k)s.
According to some estimates, by 2030, millennials are expected to hold five times as much wealth as they do today. This leads many to wonder what will happen to this vast accumulated wealth once it’s passed on. For Christians, this wealth transfer is an exciting opportunity for growth in the church and global missions. However, the generosity of future generations will determine how much of this wealth will be directed toward Christian causes and organizations.
Generational Trends
Older generations are responsible for most of the donations and tithes given to religious organizations. By one estimate, the combined forces of the Greatest Generation (1900–1927), the Silent Generation (1928–45), and boomers have backed 78.8 percent of total church giving. Not only are churches contending with the loss of these generations, but giving to religious organizations has declined from an estimated 70 percent in 1954 to just 27 percent of all donations made in the U.S. in 2021.
Even large churches aren’t immune. An annual report on giving to U.S. evangelical organizations found that giving to the largest churches fell by more than 6.6 percent, despite a 4 percent rise in overall charitable giving in 2021.
Older generations are responsible for most of the donations and tithes given to religious organizations.
Yet there’s cause for optimism. While younger generations grapple with higher costs of living and a greater debt load than their parents and grandparents, these generational cohorts do want to shape society in meaningful ways as they find their financial footing. According to Forbes, younger people are categorizing charitable giving as a “critical spend” even when they must delay spending and make cost-conscious modifications in other areas.
Transferring Values
Younger Christians are likely to adopt the generosity of their parents and grandparents if those values are communicated and modeled within the family. This presents the boomer generation of Christians with an incredible opportunity. Here are three ways to transfer your wealth—and your values—well.
1. Engage your family.
According to research, family meetings and regular communication are considered the most effective planning strategies for wealth transfer. No beneficiary should be surprised by the decisions of the benefactor. Conversations should include the entire range of stakeholders. Instilling a greater sense of responsibility and inclusion among heirs will help in managing family wealth in the future.
These conversations can be formal or informal. A family conference creates an opportunity for parents and grandparents to share how God provided for them and brought them to this point in life. It’s helpful for heirs to fully understand an estate plan and hear the passion, purpose, and principles guiding their parents’ and grandparents’ financial decisions. This is a great way for benefactors to convey values they’d like to see the younger generation cultivate, such as biblical wisdom, fiscal responsibility, stewardship, and generosity.
By talking about both values and valuables, older family members can articulate how the next generation can shape the family legacy while encouraging them to think strategically and missionally about what they inherit. This is why it’s so important to engage your family on these issues while you’re still living.
2. Plan for your estate.
Comprehensive estate planning is an important component of an overall financial plan and can articulate vision and values that transcend the money itself. If done well, an estate plan will empower future generations to be generous.
By talking about both values and valuables, older family members can articulate how the next generation can shape the family legacy while encouraging them to think strategically and missionally about what they inherit.
This process not only creates a plan for distributing wealth but can include a charitable giving strategy and tactics for administering that strategy. Putting plans in writing eliminates ambiguity. If church giving is a priority, the estate plan can include certain instruments, such as trusts and asset gifting, to provide structure around how a person’s wealth can be used to support a local church, ministry, or missions organization.
While not legally binding, an ethical will is a practice with Judeo-Christian origins that can convey religious values, morals, and beliefs. It’s a tool for capturing a person’s history, wishes, beliefs, and other personal information in writing so future generations have a greater understanding of the person leaving the inheritance. For Christians, this will hopefully lead to younger generations that advance the priorities and generosity of their parents.
3. Educate and encourage heirs.
Financial acumen may be more of a challenge for younger generations than for boomers, and the need for education is clear. According to recent estimates, 63 percent of U.S. consumers report living paycheck to paycheck. A staggering 77 percent are in some form of debt. While receiving a large inheritance may be a welcome relief to those struggling financially, those passing on their wealth may be rightfully concerned about their heirs’ abilities to manage this influx of money.
Although different than traditional financial planning, teaching financial literacy helps to develop an understanding of basic financial concepts so heirs can confidently handle the money they receive. A financial advisor who understands generational wealth planning can facilitate family meetings and provide education on money management. But it’s ultimately the responsibility of older Christians to educate their heirs with a spiritual understanding of money and stewardship.
Learning to be generous is a process that begins with recognizing that God owns all we have and then discovering what God’s Word says about giving. Understanding timeless biblical truths about money prepares people’s hearts for generosity and opens their eyes to the opportunities for ministry around them. When financial planning and wealth management transcend mere dollars and cents, the next generation can be inspired to participate in how God is working in the world.
With the exceptional wealth transfer that’s coming in their lifetimes, younger generations hold the power to transform church giving if they cultivate the practice of generosity.
Involved in Women’s Ministry? Add This to Your Discipleship Toolkit
We need one another. Yet we don’t always know how to develop deep relationships to help us grow in the Christian life. Younger believers benefit from the guidance and wisdom of more mature saints as their faith deepens. But too often, potential mentors lack clarity and training on how to engage in discipling those they can influence.
Whether you’re longing to find a spiritual mentor or hoping to serve as a guide for someone else, we have a FREE resource to encourage and equip you. In Growing Together: Taking Mentoring Beyond Small Talk and Prayer Requests, Melissa Kruger, TGC’s vice president of discipleship programming, offers encouraging lessons to guide conversations that promote spiritual growth in both the mentee and mentor.
