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Warren Buffett knows just how important it is to teach kids about the value of money. After all, he is one of the world's wealthiest individuals.

Long before he became CEO of Berkshire Hathaway, the Oracle of Omaha started several of his own small businesses. At just age six, he purchased a six-pack of Coke for 25 cents and sold each can for a nickel. He also sold magazines and gum from door to door.

Start teaching basic money concepts to kids at an early age

In a 2013 interview with CNBC, Buffett said, “My dad was my greatest inspiration. What I learned at an early age from him was to have the right habits early. Savings was an important lesson he taught."

When asked what he thinks is the biggest mistake parents make when teaching their kids about money, the billionaire investor replied, “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.”

Yup, Preschool. Supporting Buffett’s point, researchers have noted that 80% of our brain growth happens by age 3.

One study from Cambridge University found that kids are already able to grasp basic money concepts between the ages of 3 and 4. And by age 7, basic concepts relating to future financial behaviors will typically have developed.

“Most parents already know how important it is to teach their kids about money and how to manage it properly,” Buffett acknowledged. But there’s a difference between knowing and taking action. Parents seem to know that they should talk to their kids about money but many fail to actually sit down and have a conversation with them about it.

Buffett taught simple financial lessons to kids via animated series

In 2011, Buffett helped launch a children’s animated series called “Secret Millionaire’s Club,” which featured himself as a mentor to a group of students.

The 26 episode show tackles one financial lesson per episode. Episodes topics include lessons such as how a credit card works or why it’s important to track where you put your money.

“I taught all [three] of my kids the lessons taught in ‘Secret Millionaires Club,’” Buffett told CNBC. “They are simple lessons meant for business and for life.”

Below are a few lessons from the show, along with tips from Buffett on how to teach them to your kids:

1. Creative thinking

The goal is to encourage your kids not to give up just because something doesn’t work the first time. The ability to think creatively and outside the box will come in handy when they run into future financial challenges.