Once we start to receive an allowance, many of us grow up believing that we know how money works—until we encounter financial troubles, accountant Jane Honeck says. It would seem that understanding at a young age how money works could help consumers to avoid those troubles.
Enter investment guru Warren Buffett. In April, Buffett launched the Secret Millionaires Club (smckids.com), which is a website for children that is hosted by AOL and produced by A² Entertainment. On the website, Buffett appears in cartoon episodes in which he teaches basic financial concepts, such as how credit works. Negotiations are under way for a TV series.
Honeck believes that the website “does a great job of educating up-and-coming young entrepreneurs about how to run a successful business.” But she points out that so far, however, the website doesn’t “address the critical thinking part of money management.” For instance, she says, the site should provide tools for assessing the “buy, buy, buy” messages of kid-oriented advertisements on AOL.