The Biggest Mistake Parents Make in Financial Education
If there’s anyone who knows the importance of teaching kids to be responsible with money, it’s Warren Buffett. The legendary CEO of Berkshire Hathaway started his first business at the age of 6 and has become one of the most successful investors of all time.
On CNBC Make It , he has a tip for young or expectant parents: It’s never too early to start teaching your kids about money.
Poured in with the spoon
Because every big dream starts small, including Warren Buffett’s. Before becoming CEO of Berkshire Hathaway, he had founded numerous small businesses, the first even at age 6. He bought a six-pack of Coca-Cola for 25 cents and sold them for 5 cents each.He also sold magazines and chewing gum at the door.”My dad was my big inspiration,” Buffett said in an interview with CNBC earlier. “I learned the right habits from him at a young age.Saving was an important lesson I learned from him.
Start at toddler age
When asked what he believes is the biggest mistake made in financial education, the living legend replies: “Sometimes parents wait until their teens to teach their children how to manage money. They should have done that in kindergarten. to do.
Yes, you read that right: from the age of 3, children can understand the basics of money. And when they are 7 years old, they are able to understand that financial choices today can affect the future.
It’s never too early
“Many parents already know how important it is to teach children to deal with money. But there is still a difference between knowing and actually doing something with it.”It’s never too early to start teaching children the value of money. Whether it’s the value of a dollar, or the difference between wanting something now and saving for the future. These are all concepts that children develop early in life. encounter, so helping them understand it is the best thing you can do.