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I think it is important to have a close relationship with the extended family; strong family ties can help a family grow in many ways and even build wealth. You have a close relationship with your family, which I never had. I'm only close to a few of my cousins because, on both sides and I will want my children to have a better relationship with their extended family.
I'm glad to know you won't let that repeat with your children, I think that's where many get it wrong. It's fine to have a good relationship with your extended family, just have boundaries.