How to Build Generational Wealth with a Seven-Generation Mindset

Generational wealth, legacy planning, and sustainability are hot topics in the field of retirement planning. In our economy, retirement planning is starting earlier than in previous generations. Some parents are even starting Roth IRA accounts for their children early on to capitalize on compound interest, ensuring their children may one day retire comfortably. These decisions often stem either from experience with generational wealth or from a desire to break patterns of poverty. A key philosophy to consider in carrying out these long-term goals is the seven-generation mindset.

What is the seven-generation approach to wealth planning?

For many Native American communities, including my own, the seven-generation teachings are an integral guiding philosophy that emphasizes how decisions made today impact future generations for up to seven generations. Seven generations include: you, your children, your grandchildren, your great-grandchildren, your great-great-grandchildren, your great-great-great-grandchildren, and your great-great-great-great-grandchildren. Some live to see their great-grandchildren, who could potentially live to see their great-grandchildren (your great-great-great-great-grandchildren) through stories, traditions, or heirlooms passed down. An example of this is that I have known two of my great-grandparents into my teens, learning stories of their childhood, spiritual beliefs, and ways of life. If I live to see my great-grandchildren, they will learn stories of their ancestors seven generations removed.

How one family built wealth across seven generations with land

By strategically leveraging assets and wealth, we can impact seven generations and beyond. Take my great-great-grandfather's farm, for instance. He was able to sell his allotted land under the Indian Allotment Act of 1887 to purchase land for raising work horses and establishing a family farm. With this land, he had a successful horse business, a thriving family farm, and raised thirteen children. On this land, some children raised their own families in additional family-owned homes and saved until they could purchase land and build homes of their own.

My grandmother recounts stories from her own mother moving to the farm from the Native reservation after marrying her father. This was during the great depression, the most challenging economic times for many American communities. Her mother would say that it was unbelievable how the family thrived. There was always fresh bread and enough food to eat. It was a stark contrast from the life she had on the reservation, where her mother made the difficult decision to send her children to boarding schools with guaranteed food and shelter.

In my great-great-grandfather's will and land deed, he required that the land be passed to a blood relative. Upon his passing at age 99, he left this land to one of his children. Upon their passing, the land was divided among four children. One of the four did not have children and left his land to his first cousin's son, my father. (In Native culture, he is referred to as an uncle, even though technically a cousin.) My family will inherit this home, and my grandchildren will be the seventh generation to benefit from this land, continuing the legacy of my great-great-grandfather. It was my great-great-grandfather's dream to share this land with his descendants for several generations into the future. His vision embodied the seven-generation mindset, ensuring generational wealth. Although owning land is not a traditional Native American concept, he recognized that land was an asset to be leveraged and sustained beyond the immediate family and generation. He also lived through the time when many Native Americans had sold off their allotted land to non-Native community members.

You don't need direct heirs to create generational wealth

In this example, I also want to point out that you do not need direct lineage to have a significant financial impact on future generations. My great-uncle (technically, my cousin) bequeathed his land to my father, his nephew. There have been many great financial influences in history that have impacted several generations into the future. We see examples of these in bequests that support buildings or expansions that create community impact for decades, such as endowments that sustain community programs, public land spaces for gardens, parks, and wildlife. Similarly, the seven-generation mindset can also be applied to social, environmental, climate justice, and political justice movements. The efforts that we make as a society today can create a better or worse life for our future ancestors.

Practical ways to apply seven-generation thinking to your finances

Practicing a seven-generation mindset in our modern financial world might look like showing your children how to utilize a budget and create a family giving plan. It could also look like supporting and investing in community-owned businesses, or following through on estate planning tasks, like setting up wills and trusts that protect assets for generations to come. By practicing this mindset regularly, it becomes a habit ingrained in everyday life choices.

How your financial decisions shape seven generations

When we adopt this perspective, our sense of time expands. Looking back seven generations, you have 64 direct ancestors. When you look back that far and imagine their wishes for seven generations into the future, you are living beyond your ancestors' wildest dreams. As you plan your financial future, how will the choices made today ripple forward through seven generations? Whether it's buying a home, saving for retirement, or giving back to your community, every decision holds the power to shape your dreams for the future.

Now it’s time to ask yourself, "What legacy do I hope my financial choices will leave seven generations from now?"