Warren Buffet is a name everyone counts on when looking for financial advice that can help change fortunes. The CEO of Berkshire Hathway started at an early age as a door to door seller and rose up to be the most powerful names in the world. In the newest of stories, he advises to parents in the United States while conditioning their children for finances and money.
Warrant Buffet: Start talking about money with kids at an early age
The Billionaire businessman and the world visionary was asked about the thing he considered is the biggest mistake US parents are making while teaching their children about financial aspects and money handling. He made a vital point which is indeed very basic yet so important, He says in the United States Parents wait for years till their kids are a teenager to start telling about money and managing it correctly.
He suggested that it often becomes too late as children get most of their learning and develop understanding at an early age. They inculcate habits and create patterns of actions at an early age thus it is imperative to talk and help them understand money management starting as early as in their preschool.
As per Buffet, most of the parents are aware of the importance of teaching financial wisdom to kids at an early age however they do not do it eventually. Also, a study at Cambridge University revealed that children can understand finance and money concepts at an early age of 3 and the concepts of financial planning by the age of 7.
This clearly explains why teenage is too late to start talking about money issues to kids. The world is volatile and the information which children grab nowadays is too varied. Thus they develop sensibilities fast and at a comparatively earlier age than our generation did. So New age parents should start money talks with their kids at a smaller age, the sooner the better.
Buffet also told that he taught basic lessons of financials to his three kids that can be implemented in Business and life. The lessons he shared with kids on his show the Secret of Millionaires.