I once heard that Warren Buffet will only help support his kids/grandkids as long as they are in school. In case you didn’t know, Warren Buffet is the 5th richest person on the planet. He has a current net worth of 116.9 billion dollars. Obviously, he’s well beyond building “generational wealth”. I’m interested in his opinion on when and how to teach children about money now that I am a parent. And I was surprised to learn he thinks that we should be teaching kids about money starting at 3 years old. (Or around the time they are in preschool).
Shhh….There’s a Secret Millionaire’s Club for Kids
In case you don’t know…Warren Buffet has a Secret Millionaire’s Club! And it’s geared for kids. Also anyone can access the information on Youtube. It’s a cartoon called The Secret Millionaire’s Club. And it’s about Mr. Buffet mentoring a group of young entrepreneur kids with business and money matters. However, I’ve watched a few episodes and based on vocabulary and concepts, I’d recommend it for elementary age kids versus preschool.
3 Ways to Teach Kids about Money at Age 3
Preschool age children (around 3-5 years old) are rapidly learning and developing,. By teaching them now about the principles of money, it is setting the tone for the foundation of financial matters for their life.
- Teach them vocabulary words about money. Preschool age kids are learning the basics of the alphabet and numbers. They should be exposed to a lot of vocabulary words. Teaching kids the names of coins and bills is a good place to start to teach about money.
- Play games such as “grocery shopping or “ice cream shop” with things around the house. My toddler is very familiar with the real grocery store at her age. Nowadays, she understands the premise of the check out line and cashier. And she plays pretend ice cream shop/cafe. We also use fake money. And we also use a play cash register. She uses it to practice what it is like to buy something. Also, she uses it to pretend to be a cashier. I have to help her make change but I think this is a great introduction to both running a business and being a customer.
- Start a piggy bank! You can introduce your child to the concept of a piggy bank. This might be a way to introduce the topic of saving money. However, it doesn’t have to be an actual piggy bank or bank from the store. Rather, you can also just put it in a jar or jars. Then you can label each jar according to what they are “saving” for. Whether or not you give them an actual allowance at this age. In general, it might be good to just give them loose change to “save” for practice.
Remember Your Kids see Your Attitude About Money
“Word is hard and money doesn’t grow on trees.”
A common quote heard by kids from their parents
However you choose to start to teach your kids about money, I hope you remember that money and how we view it is important, Not only for us but for our kids as well. Also, when talking in front of your kids, be aware of your attitude and ideas around money. We pass down our beliefs. Try to make sure you pass down good ones.
Remember 2 Savor these moments!
