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This is the Error of Parents Teaching Children about Money Warren Buffett Version

Saturday, September 24 2022 09:30
Reporter: Merdeka

Warren Buffett. ©Jamie McCarthy / GETTY IMAGES NORTH AMERICA / AFP

Merdeka.com – The name of a billionaire and an accomplished investor Warren Buffett may not be foreign to hear. He is one of the world’s richest people who had success with investment firm Berkshire Hathaway.

However, who would have thought Warren Buffett started several small businesses from the age of six. At that time, he sold several cans of soda, magazines and gum from door to door. He explains that a habit learned from an early age has helped him to become who he is today.

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“Saving is an important lesson taught to me,” Buffett said in an interview with CNBC in 2013.

When asked what he thought was the biggest mistake parents make when teaching their children about money. The billionaire replied, money management is one of them.

“Sometimes parents wait until their kids are teenagers before they start talking about managing money,” she says.

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The sooner the better

Warren Buffett explained, there is nothing wrong with teaching money management, especially saving from an early age. Because, if children have been taught to save from a young age, when they grow up, saving will become a very useful habit for their adult life.

One study from Cambridge University found that children can understand the basic concept of money between the ages of 3 and 4. And at the age of 7 years, the basic concepts related to future financial behavior will usually develop.

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Buffett admits most parents already know how important it is to teach their children about money and how to manage it properly. But not many take action to teach their children from a young age.

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It’s Never Too Early

Furthermore, he also argues, instilling healthy financial habits in children is one of the most important things parents can do to help ensure their child has a successful future.

“It’s never too early,” Buffett said in a Q&A with Yahoo Finance in 2013.

According to him, even teaching kids for just a dollar’s worth. This is a concept that must be met by children at a very early age so that they are able to understand money management for needs, desires or saving.

Intern Reporter: Hana Tiara Hanifah

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