The key to making smart decisions is to think about how different choices can impact future outcomes.
- Buffett suggests modeling good decision-making skills and talking to your kids about your decisions as you make them, as well as any resulting domino effect they could have. For example: “We want to buy a new TV, but our AC is broken and we need to save money to get it fixed. If we don’t, it will be too hot in the house when summer comes. Once the AC is repaired, we can think about buying the TV.”
- Get your kids into the habit of making good decisions about how to save money. Maybe there’s a DVD they want to buy. Ask them whether they really need it or if they can rent the movie from the library.