Winning Bizness Desk

Mumbai. Warren Buffett is considered the world's biggest investor. His basic mantra of earning money can be beneficial for anyone. Recently, he has given some such basic mantras for children. He says that children should start the basic education of money and savings along with their studies. Parents go ahead and tell their children about it in their teenage years, which is the biggest mistake.

In an interview, Warren Buffet said, "My father is an example of this. He told me that the sooner good habits come into life, the better. He taught me the important lesson of saving. Buffett says that most parents know that it is important to educate their child about financial management, but there is a difference between knowing and practicing. Many parents do not follow this even after knowing all this.

Explain them the value of money

The value of money, the difference between need and desire or the importance of saving - these are all things that children are exposed to at an early age. So the sooner it is told about them, the better. Healthy financial habits in children will help in ensuring their successful future. Buffett helped teach finance management and savings in the animated series "Secret Millionaire Club" for children.

How to start saving

Saving money is like earning money. Teach children the difference between want and need. As toys are their desire and bags are their need. By reducing desires they can save.

Differentiate price and value

For shoes or gadgets of a well-known brand, we pay more, while we can buy the same thing at a lower price. Teach children how much something is worth. Children can be prepared to make smart decisions through the future implications of their decisions. Instead of buying a book, they can consider getting it from the library.

Nip in the Bud

Research also supports Buffett. According to research, 80% of the development of the brain occurs by the age of 3 years. According to a Cambridge University study, children are able to understand the basics of money in 3-4 years. But a survey on parents said that only 4% of parents talked about financial matters with children before the age of 5. 30% did it after 15 years while 14% never gave such learning.