Every dollar you earn, every property you acquire, and each investment you make—if you’re wise, you want them to ultimately benefit your children. As it says, “a good person leaves an inheritance to their children’s children.” We know the importance of leaving a financial legacy. Yet, despite knowing how crucial estate planning is, far too many families face the turmoil of losing loved ones without a clear plan, leading to division, drama, and a windfall only for the taxman.
Social Capital Investment: The Legacy More Valuable Than Money
Now, imagine there’s another asset even more vital than money or property—one that can continuously provide opportunities and guidance across generations. This asset is social capital.
At SCB, we define social capital as the value in our relationships with people, institutions, and organizations. It’s the “X factor” behind the jobs we land, the contracts we secure, and, yes, even the schools our children get into. Social capital is the backbone of valuable information and insights that guide us in our careers, investments, and day-to-day choices.
Here’s a tough question: if you were to pass away tomorrow, what’s your plan for passing this invaluable social capital to your heirs? Don’t worry; you’re not alone in pausing at this thought. When we posed this question to thousands of workforce development professionals, every single one admitted they had no plan.
Social capital is likely the most powerful asset we possess, more impactful than any financial or academic accomplishment alone. When I look at young people’s economic struggles, it’s clear that education alone is not the answer. According to a recent report from the Strada Institute for the Future of Work and the Burning Glass Institute, more than half of recent four-year college graduates—52 percent—are underemployed a year after they graduate. A decade after graduation, 45 percent of them still don’t hold a job that requires a four-year degree.
So, what is the missing piece? The answer is social capital. In my latest article, I explain why some groups flourish financially while others remain stuck in poverty. The difference is social capital—the hidden currency that influences job security, credential value, skill relevance, college access, and, most critically, completion rates.
If social capital is such a powerful factor, why don’t more people consider leaving it as a legacy? If this message opens your eyes to the value of social capital, then let’s consider its importance for low-income young people. By giving them abundant social capital, we’re equipping them with resources worth far more than a few thousand dollars.
If we managed our social capital with the same diligence as our finances, maybe we’d see fewer young people labeled “disconnected.” After all, this generation is the first predicted not to surpass their parents’ earnings. The gap between “haves” and “have-nots” grows wider every day. Ensuring young people build meaningful connections before earning credentials can change that trajectory—for their benefit and ours.
It’s time to do more than hope a credential will open doors for young people. Social capital is what gets them in and keeps them in. Jobs change, and when layoffs hit, the last hired is often the first fired.
Leaving a social capital legacy isn’t just for your children; it’s a gift to all children. Promise me one thing: don’t wait until it’s too late to share your social capital. Let us help you start today.
Edward DeJesus, Founder of Social Capital Builders.