You are correct. I read a book about millionaires some years ago. The children of millionaires who learned how to make money and were not automatically showered with loads of money from their rich parents fared better in life than the children of wealthy parents who gave their children gobs of money and gifts without teaching them how to earn their money and use money wisely.
It always seems to be the third generation of wealth that completely goes off the rails. The offspring seem to wind up working in whatever the business was that made the family wealth, but then their kids wind up not being interested and just get born rich and have no concept of anything.
My family (couple generations back) came here poor from Ireland and built the biggest supermarket chain in the US. They didn't believe in giving to kids and only set up trusts for college for my father's generation. Everything else went to build hospitals in the US as well as back in Ireland. That probably was the wise approach.