Warren Buffet is a money guru, so when he talks about money, we should all listen.
And one thing Buffet’s noticed is that parents are teaching their kids about money when it’s too late.
Also read: Q&A with Warren Buffett
“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,” he told CNBC.
“What I learned at an early age from him was to have the right habits early. Savings was an important lesson he taught me.”
While some of you might be thinking preschool is a little young to teach kids about money, studies have shown that around 80 per cent of our brain growth happens by the time we’re three years old, which means it’s not too early to start.
Buffet told CNBC that his children were taught lessons like how to think flexibly, which is handy when they run into future financial challenges.
He taught them how to start saving money through activities, like by giving them money jars for savings and spending. When your children receive money, you could talk to them about how to split the money between both jars.
Decision-making activities can help your kids understand how different choices impact future outcomes.
Buffet told CNBC you can talk to your kids about your own decisions as you make them, which can help them understand.
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