1 Valuable Parenting Lesson from Warren Buffett

In 2006, Warren Buffett made a pledge to give away 99% of his wealth. According to Bloomberg's calculations, that would be roughly $65 billion.

This is a noble action, and one surely praised by most. But Buffett also has 3 children -- how do you think they feel about their father pledging away the family's unworldly wealth?

Well, believe it or not, they are perfectly fine with it. They have accepted their father's decision and have even begun to manage their own philanthropic endeavors.

How was Warren Buffett able to ease his children's concerns and avoid years of awkward Thanksgiving dinners? Communication.

As he explains in the video below, Buffett highlights why he takes to the time to walk his children through any changes he makes to his "last will and testament" before he signs it. This is in stark contrast to other wealthy families. 52% of parents with more than $3 million in investable assets have yet to fully disclose the depth of their wealth with their children and 15% haven't said a peep about it, according to U.S. Trust's Insights on Wealth and Worth study.

40% of people in that study were afraid their kids would make poor decisions or squander the money. These are valid concerns, but only if you do not take the time to educate your children and be transparent on the topic of money -- something Buffett has always stressed through his annual letters to Berkshire Hathaway shareholders.

If Buffett is taking the time to go through his $66 billion fortune with his kids, surely everyone can walk their families through their financial situation.

Warren Buffett: This is a "real threat"
Buffett isn't scared of his children squandering his money away, but there is a new technology that's keeping him up at night. Click here to access a FREE investor alert on how you can invest in this company we're calling the "brains behind" the technology.

Read/Post Comments (0) | Recommend This Article (3)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 3024109, ~/Articles/ArticleHandler.aspx, 9/2/2015 10:51:07 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

David Hanson

David has been with The Motley Fool since 2013. He is a graduate of the University of Miami. Follow David on Twitter for all things finance, marketing, and investing.

Today's Market

updated 1 hour ago Sponsored by:
DOW 16,351.38 293.03 1.82%
S&P 500 1,948.86 35.01 1.83%
NASD 4,749.98 113.87 2.46%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes