The Lesson In The College Scandal

I was as stunned as the next person when news broke recently that 33 wealthy parents were indicted on fraud charges for trying to bribe or cheat their kids’ way into elite colleges.

- Anne Kates Smith

These kids were already neckdeep in privilege and opportunity. They didn’t need to cheat on entrance exams or pose as recruited athletes to get into a good school. Some of the kids were on board with the scheme, and others, horrifyingly, had no clue. But in either case, the comment at a news conference by Andrew Lelling, U.S. attorney for the district of Massachusetts, says it all: “The parents are the prime movers of this fraud.”

The whole rotten debacle reminds me of a story I did a few years ago about inherited wealth. It was a look at why family fortunes tend to dissipate within a few generations, and how well-off parents need to be proactive about preparing their kids, starting at an early age, to handle money and privilege. A revelation to me at the time was that it’s harder than it looks to raise emotionally healthy, money-smart kids when money is no object.