Being born into money comes with certain advantages: a trust fund, connections, perhaps a Sweet 16 luxury car. But inheriting money often comes with staggering responsibilities. Nobody wants to be known as the spoiled rich kid who squandered the family fortune. Yet growing up in an environment where money flows like water may not be the best training ground for learning how to retain and build wealth.

That’s why some financial advisers who regularly counsel affluent clients about inheritance issues are also prepping their rich kids so they learn to handle money before they get it. Bank of Montreal’s Harris Private Banking division offers one such workshop, perhaps the only one of its kind in Canada, called the Financial Fluency Program.

BMO launched the first seminar late last year, and has held three more this year in Toronto and Vancouver. The program is geared toward people aged 18 to 25 from families with a net worth of $25 million to $100 million, but any client can sign up. Naturally, privacy is a concern with so many scions gathered in a single room. The number of bank representatives is limited (journalists are a definite no), and participants aren’t required to share their last names with anyone.

The seminar starts with basic banking information, such as handling credit cards and typical bank accounts. The remainder of the day is taken up by investing and portfolio management, including asset allocation, risk and return, and what to look for when choosing an investment manager (with no emphasis on choosing BMO, of course). “For some of the high-net-worth families, that’s the way they want their children to operate — managing their own affairs,” says Jean Blacklock, vice-president and managing director of wealth services at BMO Harris. The sessions have proven so popular that thebank will hold seven seminars in six cities in 2009, and is considering expanding them to two full days.

Down south, Goldman Sachs has annually offered a similar program called Next Gen for the past 12 years. The two-day seminar attracts between 100 and 150 people — including some Canadians — generally from families with a net worth of more than US$50 million. Much of the program deals with wealth management basics and a particular focus on breaking the third-generation phenomenon.

“We’ve heard this over and over again, and in so many circumstances, the third generation is the one that consumes and destroys wealth that was created by the first generation,” says Bruce Heyman, managing director of private wealth management at Goldman Sachs.

Next Gen also teaches different ways to engage in philanthropy, and how much of a fortune to allocate for charitable causes. This year’s workshop included a pitch from the non-profit Nature Conservancy, though Heyman says the session doesn’t push participants in any particular direction.

Both financial institutions have a stake in reaching out to the next generation to retain them as clients once the parents are out of the picture. “Very much, this is about deepening our client relationship,” Blacklock says.

But that doesn’t mean the programs aren’t useful. Pat Quinn, 24, took BMO’s course last year in Toronto. His parents operate three BMW dealerships in Ontario, and he’s a sales manager. One of the most surprising aspects of the course, says Quinn, was the lesson about the cost of living. “You certainly don’t get a good grasp in your high school or university years of what kind of money it takes to live a certain lifestyle,” he says. “The people in the course with me also had their eyes opened.”

Maybe such knowledge will allow them to keep living it up — until the next generation comes along.