What Warren Buffett and Kourtney Kardashian Teach Their Kids About Money
Celebrities are incredibly influential people who know a lot about success — especially achieving wealth and then managing it. So what can we learn from them about the tricky subject of teaching children about money? From knowing how to simplify financial concepts or explain money at an appropriate age level, to teaching your children practical lessons in managing money, here are some tips on teaching money lessons from the people your children see in magazines, watch on TV and will surely know about as they grow up.
Warren Buffett: Learn Important Lessons Early
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The Oracle of Omaha claimed a stake in the mission to promote financial literacy among children when he launched an animated series in 2013 to commemorate Financial Literacy Month called “Secret Millionaires Club.” With his voice featured alongside Jay-Z and Shaquille O’Neal, his aim was to promote financial lessons among children and parents alike. “All the lessons in Secret Millionaires Club are lessons I taught my own children,” Buffett said, reports Yahoo Finance. “We produced this series to try and teach other kids, and in some cases, their parents! They are simple lessons that can help you in business and in life, no matter what age you are.” Financial philosophies instilled included the following lessons: “the more you learn, the more you will earn,” “learn from your mistakes, and the mistakes of others” and “fail to plan, plan to fail,” reports Examiner.com.
Kourtney Kardashian: Work Is a Part of Life
Us Weekly reports that the entrepreneur and eldest daughter of the Kardashian clan, Kourtney Kardashian, is a supporter of chores to teach children the value of work, time and money.
“I think if [kids] do chores, it’s a great thing,” Kardashian reportedly said. Us Weekly wrote that Kardashian reportedly admitted that her children are a bit too young to be earning from the “family payroll” just yet.
Even if your child is too young to be paid money, he might be old enough to take part in basic chores like picking up toys or putting trash in the bin. Consider having your child work toward things he might want like a trip to the ice cream shop or playtime.
David Beckham: Chores or No Allowance
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Like Kardashian, former major league soccer player and model David Beckham has a strict policy about chores for his children. “They have their chores,” Beckham said, reports British site ParentDish. “Putting their plates in the dishwasher, making their beds in the morning. If they don’t do it, they don’t get their pocket money!” Considering the fact that children under the age of 16 can’t work without specific authorization to do so in the United States, you’re likely the one source of income for your children. Having them work to earn an allowance can teach them to value money more, making them more likely to spend it carefully rather than on impulsive or low-value purchases. Read: How You Can Help Turn Your Kid’s Summer Paychecks Into $300K
Bill Gates: Don’t Count on an Inheritance
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Bill Gates, founder of Microsoft and the richest man alive, has already donated more than $26 billion of his wealth from 1994 and 2006 alone through the Bill & Melinda Gates Foundation. On top of that, he and his wife have already taken part in The Giving Pledge, committing to give away 50 percent of their wealth throughout their life or postmortem. So where does that leave his kids? “I knew I didn’t think it was a good idea to give the money to my kids,” Gates said, according to Business Insider. “That wouldn’t be good either for my kids or society.” Gates noted in 2013 in a Reddit AMA that he developed his philosophy for inheritance based on advice from Warren Buffett, the third-richest man alive. “I definitely think leaving kids massive amounts of money is not a favor to them,” Gates said, reports The Huffington Post. “Warren Buffett was part of an article in Fortune talking about this in 1986 before I met him and it made me think about it and decide he was right.” According to The Guardian, Gates does intend to leave some of his $78.7 billion net worth to his children — “just” $10 million each.
Gene Simmons: Children Must Make Their Own Way
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Member of iconic rock band Kiss, Gene Simmons is also a successful entrepreneur and actor. He shares a very similar philosophy to Bill Gates and Warren Buffett regarding inheritance: “In terms of an inheritance and stuff, they’re gonna be taken care of, but they will never be rich off my money,” Simmons said, according to Business Insider. “Because every year they should be forced to get up out of bed, and go out and work and make their own way.”
George Lucas: Education Is Vital
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Another famed billionaire, George Lucas is the mind behind the prized Star Wars franchise and intends to donate a majority of his money toward the educational opportunities of children. “I am dedicating the majority of my wealth to improving education,” Lucas said, reports Business Insider. Time magazine also quoted the screenwriter, director and producer for noting his desire to make education better in the future. It follows that Lucas would also encourage parents to emphasize education and learning with their own children. “As long as I have the resources at my disposal, I will seek to raise the bar for future generations of students of all ages,” Lucas said, according to Money magazine.
Michael Bloomberg: Money Is Worth More When Given Away
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Ranked No. 13 on Forbes’ ranking of the richest people alive is Michael Bloomberg. The former mayor of New York City and mogul behind Bloomberg L.P., a financial software and media company, Bloomberg is also a devout philanthropist. Understandably so, his advice to parents involves donating to charitable causes. “If you want to do something for your children and show how much you love them, the single best thing — by far — is to support organizations that will create a better world for them and their children,” Bloomberg said, reports Money magazine.
Kevin O’Leary: Use Fear as a Motivator
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As one of the sharks on “Shark Tank,” Kevin O’Leary surely didn’t develop his financial philosophy from earning things easily. “If you don’t start out your life with the fear of not being able to feed yourself and your family, then what motivates you to go get a job?” O’Leary said, reports Money magazine. “Fear motivated me, and it will motivate them,” he said of his kids. It might not be the tactic you’d initially go with, but if you want your kid to be the next Kevin O’Leary,
you might want to provide your children with some hard truths about life and money. They should know that financial success won’t come easy and it’ll take hard work and courage to get there.
Jean Chatzky: Working Feels Good
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Jean Chatzky is a personal finance expert whose advice has been penned into best-selling books and featured on shows like NBC’s Today Show. “My most important lesson is that working feels really good,” Chatzky said, reports TimeForKids.com. She continued: “I’ve worked since I was young. I started baby sitting at 11, became a camp counselor at 14, and I worked through high school and much of college at a local sporting-goods store. Money that you earn yourself is so much more valuable than money that someone gives you because you come to understand what it takes to earn the money. You don’t value money until you are the one earning it.” Instilling the value of money and the satisfaction of work and earning it for oneself can be an empowering lesson for your children. Not only will it help them find success, it will also help build their self esteem as they prove their competence and worth.
Jackie Chan: Don’t Be Too Generous
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Famed actor and martial artist Jackie Chan had a piece of money advice for parents. “If he is capable, he can make his own money,” Chan said of his philosophy on raising a child, reports Business Insider. “If he is not, then he will just be wasting my money.” Take this as a lesson in giving your children too many chances to make a living on your dime. Not only will this not help their financial independence, it could harm your own financial goals.
Bernard Marcus: Give Kids Room to Succeed (and Fail)
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Co-founder of Home Depot and philanthropist Bernard Marcus has a lesson for his own kids in humility and ownership. “One of the worst things I could do is indulge them to the point where they don’t have the opportunity to make their own failures and successes that they can say are theirs and not their parents’,” Marcus said,reports Forbes. It’s important to teach kids about money management and then give them room to try your lessons out. You might not approve of how they spend their allowance and they’ll definitely make some dumb moves, but over time you can help guide them to fiscal responsibility. Giving them chances to waste money and make financial mistakes young will lessen the negative impact of unwise decisions while still giving children important experience.
This article originally appeared on GOBankingRates.com: What Warren Buffett and Kourtney Kardashian Teach Their Kids About Money.
This article by Misha Euceph first appeared on GoBankingRates.com and was distributed by the Personal Finance Syndication Network.