Let’s be real — when Warren Buffett talks, wise folks listen. The legendary investor and CEO of Berkshire Hathaway is renowned for dishing out simple, yet brilliant, insights about business, investing and life. But one particular tidbit from the “Oracle of Omaha” is a parenting principle he says is key to raising money-savvy children.
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Read on for Buffett’s key parenting tip, and feel free to also check out this advice from someone who invested as a kid, like Buffett did.
The Growth Mindset
Buffett’s rule is straightforward: guide your children toward growth opportunities. As he’s said, “You don’t get extra points for doing something extremely difficult if an easier path exists.”
The idea is to encourage kids to gravitate toward expanding industries and endeavors rather than those shrinking or staying stagnant. It applies far beyond just career selection.
A Balanced Approach
Now, this rule shouldn’t bulldoze over your children’s genuine passions and interests. It’s about smartly channeling their drives in an upward direction. A film student, for instance, may be better off chasing growing audiences and platforms instead of dwindling theatrical markets.
The key is balance. Seek growth tailored to your family’s situation and values. Look for authentic growth drivers kids can wrap their minds around, like demographic shifts. Prioritize growth that’s quantifiable through hard metrics like job numbers or market size. But only if it’s actionable for your crew.
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More Than Just Money
This wisdom goes beyond merely chasing a fatter paycheck. It’s about increasing the odds they’ll find professional satisfaction and financial stability through ethical means. Echoing what Buffett said about his dying textile factories, you don’t get rewarded for taking the tougher road when better paths exist.
By nurturing a mindset oriented toward opportunity and smart growth, you’ll raise money-savvy kids. They can spend more time pursuing their callings rather than struggling against brutal economic headwinds. It builds critical thinking skills about sustainable paths forward.
The Billionaire’s Approach
Buffett didn’t become one of history’s most successful investors by accident. His drive towards growth makes perfect sense, especially in our frenetic, ever-changing world. By instilling this mindset, you’ll give your kids a serious edge in prospering as adults.
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This article originally appeared on GOBankingRates.com: Warren Buffett’s Parenting Rule Is the Key To Raising Financially Savvy Kids
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
