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There is a historically first exchange of generations in Czech family businesses. Either one generation (founders or successors) or two or more generations cooperate in management and board. This serves different views, opinions, and practices for financial management in terms of the preference forthe use of equity or debt financing and its specific use. The paper aims to compare and evaluate the preference for the use of equity and debt financing in family businesses with differentin volvement of generations and the diversity of its allocations for the specific needs of business development. The compilation of theoretical background is emphasized in the literature review. An empirical study was conducted based on qualitative research of 245 family businesses. The obtained primary and secondary data were processed in a statistical program, the hypotheses were confirmed by Pearson's correlation coefficient and descriptive statistics. The subject of the research was family businesses. The research results show that family businesses managed by one generation prefer equity, family businesses managed by the first and second generations prefer debt financing, family businesses managed by the second and third generations prefer equity. The study confirms the dependence of the use of equity and debt financing on the number of generations in management. The need for debt financing is increasing at the period of payment for the transfer of ownership between the generations. The next generation uses debt financing primarily to invest in the implementation of technical and technological changes, to enter foreign markets. The uniqueness of the paper lies in the concept of research concerning the perspective of several generations, in research outputs that have not yet been published.