Family Balance Sheet
Assets
Liabilities
Intellectual Capital
Formal education
Informal education,
Intelligence
Human Capital
Mind-Body-Soul
Character
Mental/Emotional health
Spirit / Spirituality
Emotional Intelligence
Soft skills
Compassion/ empathy
Social Capital (community)
Relationships that …
… bring out the best in you
… affirm your strengths
… mutually respectful
… foundation of trust/honesty
… provide needed support
Attitude / Perspective
Multi generational view
Commitment to Collaboration
Mutual decision making
Financial capital
Net worth
Internal Family Risks
Money is viewed as a taboo topic
Financial illiteracy ~ inability to thoroughly understand financial matters, or take an interest in it.
Failure to comprehend importance of managing all forms of capital/assets (human, intellectual, emotional, and financial)
Inadequate / poor communication (withholding, criticism, secrets, blinders, contempt, defensiveness, stonewalling, avoiding)
Inability to resolve conflicts in a collaborative solution focused manner
Misbalance of power – decision making is dominated by one or more members (i.e. a mate/parent/sibling)
Lack of family governance structure
Financial infidelity or gambling,
Personal loans to friends/family (co-signing)
Excessive generosity
Health impairments / Disability / Premature death
Division of assets through increase of family members in each generation and/or divorce
Poor Executor/Trustee <—> beneficiary relations
External Family Risks
Market fluctuation & Inflation
Poor financial/tactical management (bad advice, naïveté)
Financial mismanagement (creditors, scams, Ponzi’s, Identity theft)
Taxes, political, and / or legislation changes
Acts of God
Lack of personal security
SHAREHOLDER EQUITY
Individual family members successfully pursue goals with support of others.
The family’s; human, intellectual, emotional, and social capital is increasing.
The family as a whole is dynamically preserving itself
The family’s governance system produces primarily good decisions, with a multi-generational view.
People who are healthy; physically, emotionally, mentally, and spiritually, can then be healthy financially.
Dysfunctional behaviour is any action that displays a lack of; regard, honesty, or integrity while interfering with; communication, problem solving, conflict resolution, or personal growth.