When a rebellious, parent hating teenager steps into adulthood and starts earning, he undergoes a magical transformation. The rebellion is replaced by respect, and hatred with trust. Parents are seen in a new light, where they can do no wrong and offer no bad advice. So when the first few salary cheques come along and parents start dispensing financial advice, the adult child toes the line, especially because he has no financial knowledge or experience.

At least, this is what happened to Gen X with their Baby Boomer parents. The parents’ experience of the capital markets was different from that of the subsequent generations, and their approach was rooted in the need to conserve capital.