5 Money Lessons Warren Buffett Taught His Kids (& You Should Too)

As a Nigerian parent, you want the best for your child.

Good education, a stable career, and a bright future.

But there’s one thing many parents overlook when preparing their children for success: teaching them about money from an early age.

Billionaire investor Warren Buffett, one of the richest men in the world, didn’t wait until his kids were grown before teaching them financial literacy. He started young. And guess what? You don’t need to be a billionaire to do the same.

The earlier you start, the better your child’s chances of financial success.

Here are 5 simple money lessons Buffett taught his kids (and you can too!):

1. Start Early

Buffett once said, “Sometimes parents wait until their kids are in their teens before they start talking about managing money—when they could be starting when their kids are in preschool.”

Research backs this up! Children develop money habits as early as age 7.

That means by the time a child starts secondary school, they’ve already formed spending and saving behaviors that could stick for life.

How to apply this:

• When your child asks for a toy or snack, use it as a teaching moment. Talk about the cost, the value, and the difference between needs and wants.
• Give your child small amounts of money and teach them to divide it into three categories: spending, saving, and giving.

2. The Value of Saving (Even Small Amounts)

Buffett believes saving money is a habit that should start early. “Saving even a little bit of money on a regular basis pays off,” he said.

In Nigeria, we often say "small drops of water make an ocean," and this applies perfectly to saving. Whether it’s ₦100 or ₦1,000, teaching kids to set money aside regularly builds discipline.

How to apply this:

• Create a savings jar or piggy bank for your child and let them drop in money whenever they receive it.
• When they want to buy something, encourage them to save towards it rather than expecting you to pay for it immediately.

3. Develop Smart Spending Habits

One of Buffett’s most practical lessons is learning to differentiate between needs and wants.

Most Nigerian parents hear "Mummy, buy me this!" or "Daddy, I want that!" all the time.

Instead of just saying no, turn it into a learning moment. Buffett suggests writing down everything your child wants and going through the list together and deciding which items are really necessary?

How to apply this:

• Before going to the market or supermarket, give your child a small budget and let them pick what to buy within that amount.
• Teach them to compare prices and think twice before spending.

4. Build Your Skills, Grow Your Wealth

Buffett says, “The best investment you can make is in yourself. The more you learn, the more you’ll earn.”

This is one of the biggest financial lessons Nigerian children need today. Many young people believe money comes only from salaries or ‘hustling’, but real wealth comes from building valuable skills.

How to apply this:

• Encourage your child to develop skills outside the classroom e.g. reading, problem-solving, public speaking, or even learning a trade.
• Let them earn small amounts by doing productive work, like helping out in a family business or learning a craft.

5. Encourage an Entrepreneurial Mindset

Did you know Buffett started making money at just six years old?

He sold packs of gum and bottles of Coke at a profit. That early experience shaped his business mindset.

Nigerian kids should grow up in a society where entrepreneurship is essential. From selling chin chin to coding, young people who learn to make and manage money early stand a better chance of financial independence.

How to apply this:

• If your child shows interest in selling things, support them. It could be snacks, handmade crafts, or even digital skills.
• Give them a small startup fund and let them track profits and losses.

The Time to Start is NOW!

Warren Buffett’s Secret Millionaires Club was an animated series that taught kids financial literacy in a fun way. At The Young Millionaire Initiative (TYM), we’re doing something similar, but specifically designed for Nigerian children.