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CEO of Berkshire Hathaway
Warren Buffett is known for his financial astuteness, smart investing principles and more. If someone has to learn something about financial management, Warren’s teachings can definitely help a great deal. Most people share a different relationship with money. What is pretty much irrefutable is that money can act as a great catalyst in life to upgrade one’s lifestyle and live a life that offers more comfort and conveniences. A lot of parents continue to raise their kids with the mindset that money is not that important and they should be content with what they have got. This explains why most adults realise it much later in their life the importance of financial planning, savings and investment.
If you’re a parent reading this then you must know it will be a great service to your kids if you teach them some of the important
money lessons early on in life. Warren Buffett is a fountainhead of knowledge when it comes to money-related lessons. Some of them are listed below. Take a look at them.
Start early
The best thing for kids is that they develop a healthy relationship with money early on in life. The sooner, the better it will prove to be in the long run. Parents can impart important money lessons by sharing their own life experiences, by reading finance books to their
children or just through casual discussions.
Lesson on saving money
A popular adage talks about that money saved is equal to money earned. Children should always be encouraged to save money, even out of their pocket money. “Instead of spending on unnecessary things, save and let your money grow through interest,” Warren had suggested.
Understanding the difference between needs and wants
Parents must also teach their children the difference between needs and wants. Children should be able to distinguish between what are the things they need in life for basic sustenance and what are the things in life that they need over and above basic things.
Investment in oneself
Warren also always maintained that the best investment one can make is in oneself through learning continuously, reading, upskilling and more. So always teach your children to be curious to lap up more knowledge from wherever they can.
Foster entrepreneurial mindset
Parents must always encourage their children to push the envelope and think out of the box. They must always tell their children to dream big and take initiatives. Warren himself started very early at the age of 6 when he would sell gum and newspapers.
