A family bank provides a safe environment in which…

A family bank provides a safe environment in which each family member can obtain a financial education. Most schools don't teach people how to obtain a mortgage, a car loan, a personal loan, or a business loan. This deficiency deters most individuals in their financial growth. It also leads most of us to learn by necessity. While this works well for a few people, who are gifted in this field, the system leaves many financially undereducated and ultimately financially unsuccessful. If a family's goal is to enhance the lives of its members, it should ensure that each family member receives a full financial education. The creation of a family bank fosters such an education. The families I have counseled on wealth preservation have found the family bank useful for providing financial education, a sense of community, character building, and financial mistake-making in a safe environment, all while increasing the family's financial, intellectual, and human balance sheets through the cumulative successes of the individual borrowers.

— from Expanding Your Range (Growth/Change/Education/Learning/Habit) · Family Wealth: Keeping It In the Family: How Family Members and Their Advisers Preserve Hu

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