The impact of money is greatest when people are young and establishing their lives. Bill Perkins argues for gifting wealth to children in their 20s or 30s, when it can fund a home or family, rather than as a large inheritance in their 60s when they are already financially stable.

If an adult child lacks ambition, the root cause is often continued financial support from parents. Providing money and shelter removes the natural consequences of inaction, creating a comfortable environment for laziness. The most effective (though difficult) solution is to cut them off financially.

Wealthy parents who endlessly provide for their adult children may inadvertently signal a lack of faith in their abilities. This can lead to depression and a sense of incapability, as the financial support is perceived as a message that they are seen as losers.

Instead of a fixed inheritance plan based on age, adopt a flexible strategy that scales financial support up or down based on a child's productivity and life choices. This approach, inspired by Morgan Housel, rewards effort and responsible behavior while avoiding subsidizing unproductive lifestyles.

While well-intentioned, providing prolonged financial support to adult children communicates a belief that they are incapable of succeeding on their own. This cripples their self-esteem and ambition, making the enabling parent the root of the problem.

When parents financially support their adult children's unrealistic ambitions, it's often not for the child's benefit. It's a defense mechanism to avoid the social judgment they would face from their own friends if their child were perceived as unsuccessful.

Continuously paying for an adult child's lifestyle, while well-intentioned, can be perceived by the child as a message that their parents believe they are incapable of succeeding on their own, leading to resentment and depression.

The traditional model of inheritance is suboptimal. Giving money to your children when they are old provides far less utility than giving it to them in their 30s or 40s. A financial gift at that stage can fundamentally change their life trajectory by helping with a down payment or easing the cost of raising children.

The greatest utility of an inheritance is when recipients are in their late 20s or early 30s, struggling with major life expenses like a down payment or childcare. Waiting until they are in their 50s or 60s provides far less value.