The vast majority of affluent Canadians are self-made, with 94 per cent of those with over C$1 million (around $1.1 million) in investable assets having made their own money, according to a new survey by BMO Harris Private Banking. In contrast, only 6 per cent reported they had inherited their wealth.

Of those surveyed, 80 per cent said they enjoyed greater wealth than their parents and just over three-quarters said they were either the same or better off financially now than before the recession.

Only a slight majority said they thought their children would be able to handle their inheritances, a view echoed by the findings of a survey by US Trust, as reported elsewhere in Family Wealth Report today. The US Trust research, however, found even more pronounced worries about passing on wealth – with only a minority of parents strongly agreeing that their children would be able to handle their inheritance plan.

“It’s encouraging to see that the majority of wealthy Canadians are feeling good about their situation – they’re doing better than their parents, have strong savings and investment plans and recognize the importance of charitable giving,” said Andrew Auerbach, senior vice president and head, BMO Harris Private Banking.

“However, it’s also clear that a sizeable number of respondents are concerned about their children’s ability to effectively manage their inheritances. This underscores the need for Canadians, regardless of income level, to make financial literacy a priority for our kids,” he added.

On the subject of philanthropy, 76 per cent of wealthy Canadians believe it is important to give back to their communities, with 59 per cent saying the recession has had no impact on their donating habits, according to the survey.