The term “generational wealth” refers to assets passed from one generation of a family to another. Those assets can include stocks, bonds, and other investments, as well as real estate and family businesses.

There are many steps you can take to start building generational wealth. Here, are some strategies that can help you create a strong financial foundation for your future and generations to come.

1. Teach Your Children About Finances

One of the challenges when it comes to building generational wealth is that you’ll have limited control — if any — over how your children will manage the assets you leave behind. Even if you don’t have many assets to pass on to your children, teaching them how to budget, how to manage debt, and how to save money will give them the skills needed to make smart financial decisions in the future.

2. Get Life Insurance

Life insurance protects your family financially if you pass away by replacing your income so that your children and your family will continue to have the financial support they need. These benefits are paid directly to your beneficiaries, so there should be no additional costs or delays in receiving the financial benefit you’ve secured for them.

3. Build a Family Business

A successful family business is a great asset that can be passed on to children to help provide a strong financial foundation. Increase the likelihood that your child will want to take on the family business by introducing them to the business at a young age, providing opportunities to learn the business as they grow, and transitioning responsibility to them as you reduce your involvement in the business.

4. Buy a Home

Buying a home is a long-term investment that can reap financial benefits for you today and for the future of your family. As the value of your home increases and as you pay down your mortgage loan, you build equity that can help build the financial foundation you plan to leave to your loved ones.

5. Invest in Real Estate

Diversify your investment portfolio by buying a rental property (or two). Investing in real estate can provide income that helps grow your wealth today and establishes another asset you can pass on to your children.

6. Make a Will

Making a will ensures your assets are handled in the manner you choose after your passing. And, in many states, a will is your only means of stating who you want to act as legal guardian for your minor children if you die. Even if you're young or your estate is modest, you should have a legally valid and up-to-date will. You can create a will for free at www.FreeWill.com.