It’s important to teach kids about money management, but that doesn’t mean it’s easy. For advice on how to teach children about the value of money and hard work, take a page out of these successful parents’ books. From investor extraordinaire Warren Buffett to reality TV queen Kourtney Kardashian, here’s what 10 successful parents teach their kids about money.
Warren Buffett: Learn Important Lessons Early
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, he aimed 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
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 in 2011. Us Weekly wrote that Kardashian reportedly admitted that her children are a bit too young to be earning from the “family payroll” just yet at the time.
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
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!”
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.
Bill Gates: Don’t Count on an Inheritance
Bill Gates, founder of Microsoft and one of the richest people 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 reportedly told The Sun. “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 Buffett.
“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.”
In 2011, The Guardian reported Gates does intend to leave some of his billion-dollar net worth to his children — “just” $10 million each.
Gene Simmons: Children Must Make Their Own Way
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
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 reportedly wrote in his “Giving Pledge” letter in 2010, reports Forbes.
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
With a net worth of more than $40 billion, Michael Bloomberg is ranked No. 8 on Forbes’ 2016 World’s Billionaires list. The former New York City mayor 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.
In his “Giving Pledge” letter, Bloomberg wrote, “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. Long term, they will benefit more from your philanthropy than from your will.”
Kevin O’Leary: Use Fear as a Motivator
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 in an interview with Chatelaine, a lifestyle website. “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
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 them build their self-esteem as they prove their competence and worth.
Jackie Chan: Don’t Be Too Generous
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.