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.”