More Q & A with Gary North. I thought the subscriber asked a good question, and I liked Gary's response…

Age: 51 (married); location: small town Utah; occupation: owner of 2 small businesses; income: $250,000+ per year; net worth: $2,000,000+; #1 Goal: prepare family for consequences of irresponsible U.S. fiscal and monetary policies.

What can I use to educate economically and prepare my 5 children (aged 22 to 27) for a challenging and uncertain economic future?

In your situation, this is the obvious question. Most parents don't have your kind of money when their children are young. When the children are older, they are less teachable. They need motivation. You can offer it. It's called "threat of disinheritance." You face the problem of preserving and even expanding inheritance. In your old age, you don't want to be a ward of your children or the State, especially the State, because it's going bust.

[Your children] need to know how to handle money. They may be thrifty. I hope so. But they must also learn entrepreneurship. Spending your life trying to conserve an inheritance, unless it's huge, is a bad use of a lifetime. It's a defensive mentality.

First, I would make sure they know that unless they show evidence of knowing how to budget, buy smart, and save, they will get a smaller share of the inheritance — maybe zero. Or a trustee will dole out the money. You must not subsidize incompetence.

Second, I would sit down with each of [your children], one on one, and find out what he/she wants to do in life. Then require that he/she read at least 20 books, 10 of them related to his/her main interest in life. Ten books will provide a competent overview of the field. If he/she has already read them, fine. He/she must write a 5-page, single-spaced book review of each of the [20] books.

The review should cover the following:

1. What is the book's main thesis?

2. How does it apply to my situation?

3. How do I plan to implement it, or not — with reasons why not?

This may take two years: a book a month. So be it.

Third, the heir must produce a written list of personal goals, with a series of lifetime goal-markers. This is a difficult, painful process. Few people will do it voluntarily.

Goal setting & success

Fourth, the heir must bring in a 12-month budget, preferably in Quicken or Microsoft Word. Any budget is better than no budget.

The best education is self-education. By requiring performance, you are encouraging self-education.