Warren Buffett,
Chairman of the Board and CEO of Berkshire Hathaway, says parents should start
teaching children about the importance of money at an early age, even in
preschool.
Warren Buffett is one of the most famous billionaires in
the world. He also loves sharing his advice with kids as part of his Secret
Millionaires Club. Here, he answers five questions, including what he thinks
the biggest mistake is that parents make when teaching their kids about money
and how he learned about money.
Do you think most parents do a good job teaching their kids
about money?
Most parents know
how important it is to teach kids about money and managing it properly. There
was a study many years ago questioning how to predict business success later in
life. The answer to the study was the age you started your first business impacted
how successful you were later in life. Teaching kids sound financial habits at
an early age gives kids the opportunity to be successful when they are an
adult.
What do you think is the biggest mistake parents make when
teaching their kids about money?
I think parents
need to start teaching kids about the importance of managing money at an early
age. Sometimes parents wait until their kids are in their teens before they
start talking about managing money when they could be starting when their kids
are in preschool.
What made you want to launch the Secret Millionaires Club? What
do you hope kids get out of it?
There are a number
of educational programs out there, but there are not many programs that teach
about Financial Literacy at an early age. Secret Millionaires Club can help
kids develop the right habits that will serve them well for the rest of their
life. If this program can have some effect on youngsters and help them develop
better habits on money, it can have a major impact on their life when they are
older.
Where did you learn about money?
My dad was my
greatest inspiration. He was my hero when I was six and he is still my hero
now. He is an inspiration to me in every way. What I learned at an early age
from him was to have the right habits early. Savings was an important lesson he
taught. I had all kinds of small businesses when I was growing up. When I was
six I started my first business. I bought a six pack of Coke for 25 cents
and sold the cans for a nickel apiece. I also sold magazines and gum door to
door.
What is the best lesson you've taught your own kids about money?
I taught all of my
kids the lessons taught in Secret Millionaires Club. They are simple lessons
that are meant for business and for life.
— By Warren Buffett
Warren Buffett is the chairman and CEO of Berkshire Hathaway.
Follow him on Twitter@WarrenBuffett.
