Warren Buffett's 5 money lessons every parent should pass on to their kids

Billionaire investor Warren Buffett is known for his smart investing and financial discipline, but he's also dedicated to teaching young people key financial lessons. Through his animated series Secret Millionaires Club, Buffett helped kids understand business, investing, and money management. The show, which ran in 2011, featured Buffett’s animated character guiding children on real-world financial matters.
Buffett believes in starting financial education early. "It’s never too early to help kids understand money," he said in 2013. Below are six key lessons Buffett passed on to his own children—and that any parent can share with theirs.
Start early
Buffett stresses the importance of teaching financial literacy at a young age, ideally before children reach their teens. Research shows that kids develop core money habits by age 7, making early education crucial for long-term success.
The power of saving
Buffett advises saving even small amounts regularly. "Instead of spending on unnecessary items, save and watch your money grow through interest." Parents can set up savings accounts or use apps to track savings.
Needs vs wants
Buffett teaches children to differentiate between needs and wants. Parents can help by reviewing a list of desired purchases to see which are necessities and which are luxuries—helping kids make smarter spending choices.
Invest in yourself
"The best investment you can make is in yourself," says Buffett. He encourages continuous learning and self-improvement, whether through reading, courses, or developing new skills.
Foster entrepreneurship
Buffett began making money at six years old. Parents can nurture their kids’ entrepreneurial spirit by supporting small ventures like lemonade stands or online businesses.
Buffett’s Secret Millionaires Club reinforced lessons about saving, investing, and financial discipline. By teaching children early, parents can set them up for lifelong financial success.