5 Pieces of Money Advice Gen Z Can Learn From Warren Buffett
Written by
Cindy Lamothe
Edited by
Zuri Anderson
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Older generations have long gleaned the wisdom from Warren Buffet’s money advice. The billionaire has provided solid financial insights for decades, but what are his most applicable lessons for Gen Z?
According to experts, these time-tested principles remain relevant for young investors. Below are five pieces of money advice Gen Z can learn from Buffett.
Start Early With Compound Interest
“I tell my Gen Z clients that Buffett’s first lesson is starting early with compound interest,” said Kevin Shahnazari, founder and CEO of FinlyWealth.
He’s seen 20-year-olds who invested just $200 monthly grow their portfolios significantly over five years through this simple principle.
“This quote matches Buffett’s famous one about getting rich slowly rather than quickly,” Shahnazari added. “When working with young clients through FinlyWealth, I emphasize that time is their greatest asset.”
Live Below Your Means
The second key lesson Shahnazari highlighted from Buffett is living below your means.
“Many of my younger clients are surprised when I show them how Buffett still lives in the same house he bought for $31,500 in 1958 despite being a billionaire,” he said. “I guide them to resist lifestyle inflation even as their income grows.
“My platform’s data shows Gen Z users who maintain modest lifestyles typically achieve their financial goals 40% faster.”
Michael Benoit, licensed insurance broker and founder of California Contractor Bond & Insurance Services, highlighted the same.
“Buffett’s frugal lifestyle is a great reminder for Gen Z that financial success doesn’t require overspending,” Benoit said. “I think avoiding lifestyle inflation — the urge to spend more as you earn more — is critical.
“For example, keeping living expenses steady while saving or investing the difference can create financial security faster. If someone earning $50,000 saves 15% annually, that’s $7,500 saved each year. Over 10 years, assuming a 6% return, that becomes $100,000.”
Prioritize Continuous Learning
Third, Shahnazari stressed Buffett’s emphasis on continuous learning.
“My most successful Gen Z clients spend at least five hours weekly reading financial books and studying markets,” he said. “They understand Buffett’s principle that knowledge compounds just like money.”
Benoit agreed, saying: “Buffett has said that the best investment you can make is in yourself, and I think this is especially true for Gen Z.”
He noted that building skills, gaining certifications or networking within your industry can lead to opportunities that grow your income over time.
“For example, spending $500 on a course that qualifies you for a $10,000 raise is a return that far exceeds most traditional investments,” Benoit said.
Buy Quality Businesses You Understand
Fourth, Shahnazari teaches Buffett’s principle of buying quality businesses you understand.
“I advise Gen Z to invest in companies whose products and services they use daily,” he stated.
Shahnazari explained that one of his 22-year-old clients built a strong portfolio starting with brands like Apple and Nike that she knew well.
“This approach has helped my younger clients avoid risky speculation in unfamiliar investments,” he said.
Keep a Long-Term Mindset
“Fifth, I emphasize Buffett’s long-term mindset,” said Shahnazari. When market volatility spooks young investors, he reminds them of Buffett’s view that the stock market is a device for transferring money from the impatient to the patient.
“My data shows Gen Z clients who maintain steady investment strategies during market downturns have significantly outperformed those who panic sell,” he revealed.
Benoit equally noted that being selective and thinking long-term is one of Buffett’s biggest lessons for every generation.
“Buffett’s approach to investments — prioritizing quality and long-term value — is a great lesson for Gen Z. He advises treating every dollar like an investment in the future, whether that’s through stocks, education, or savings,” he explained.
“For example, rather than spending $2,000 on a trendy gadget that will lose value quickly, investing it in a high-growth mutual fund could double in 10 years.”
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