Kathmandu. Warren Buffett is one of the richest people in the world. He is not only the world’s largest investor but also the CEO of Berkshire Hathaway. He has built his fortune on the principles of patience, smart investing and financial discipline. Buffett is not only successful in his business, but also makes it a priority to teach children important lessons about money.
In 2011, Buffett helped create the animated series Secret Millionaires Club. Its aim was to teach children the basics of business, investing and financial literacy. The show ran for 26 episodes. It showed the stories of some children who sought Buffett’s advice on money matters. In 2013, he told children in a program not to rush into paying money. Whether it’s understanding the value of a new toy or the importance of saving money. Here are 5 things Buffett has taught his children. You can teach your children these things too.
#Starting Soon
Buffett has emphasized the importance of financial education from a young age. In a 2013 interview with CNBC, he said, “Sometimes parents only start talking to their children about the proper use of money when they are teenagers.” While they can start as early as preschool.’
According to a study by the University of Cambridge, children start developing money-related habits as early as the age of 7. By teaching children the basics of saving, spending, and earning at an early age, parents can set them up for long-term financial success.
#The importance of even small savings
Buffett teaches that even small savings can grow over time due to the power of compound interest. In The Secret Millionaires Club, Buffett also mentions that saving a small amount of money regularly can be beneficial. A practical way to teach this lesson is to give children their own piggy bank or bank account. Parents can also use such apps. Through which children can keep track of their savings and earn interest on the deposited amount.
##Smart Spending Habits
Children must first learn how to distinguish between needs and wants. Buffett suggests an easy way to ask your children to make a list of things they want to buy. Then look at it all together and decide whether it’s a necessity or an expense. By instilling this habit early, parents can help their children develop good spending habits as they grow up.
#Growing Wealth by Improving Skills
Buffett himself continued to learn throughout his life. He often emphasizes the importance of self-study. In an episode of Secret Millionaires Club, he said that the best investment a person can make is in themselves. “The more you learn, the more you earn,” he said. Buffett himself reads several newspapers daily and encourages children to develop a love of knowledge. Continuous learning is the key to long-term financial success.
##Encourage a business mindset
Buffett started making money selling chewing gum and Coke bottles at the age of 6. Encourage children to explore their own business ideas. Whether it’s a lemonade stand or an online store. This helps children understand financial principles early on. Parents can also encourage children by providing guidance and seed money to help them start a small business. –Agency
