Anyone who has learned about “financial independence” knows who is Warren Buffett. Investors and penny-savers all around the world worship him for a reason: after decades of careful planning, he remained frugal despite becoming a billionaire. Wealth, but restraint.
Yet even his daughter, Susan Alice “Susie” Buffett, once admitted that she stumbled when a single conversation with her father challenged her views on what money should do.
Warren Buffett and his views on money at home
Warren Buffett, often called the “Oracle of Omaha,” built his fortune through Berkshire Hathaway and became one of the most respected investors in history.
Despite his investments, Warren Buffett has decided not to live like the glittering rich. He still reside in the same house he purchased in 1958, drinks a Coca Cola a day, and was known to drive to the McAuto for breakfast with the exact change in a paper cup. If anything, he is popularly accused of living too-much within his means, something that enrages the average, credit-debt-ridden American citizen.
Likewise, his three kids grew up with independence drilled into them. They could pursue their passions, but they had to do so with the same tools available to ordinary families, not with a blank check from their famous father.
The infamous $41,000 kitchen remodel
In the mid-1980s, after giving birth to her first child in Washington, D.C., Susie felt her small kitchen needed a makeover. Like many young parents, she imagined a more spacious, modern setup that could handle family life. The price tag: $41,000. Had she budgeted and set aside money for it? Of course not.
At the time, that was a massive sum (it is now). Adjusted for today’s dollars, it amounts to around $120,000. It was the kind of project that could buy an entire starter home in many parts of the country.
So she called her dad, thinking that a loan from him might be the easiest solution. But instead of a check, she got a principle-driven reply that changed her perspective.
Why Warren Buffett said no
Warren Buffett simply told her: “Go to the bank like everyone else.” It didn’t matter that he had recently become a billionaire. He believed that money, even within his own family, should be treated with discipline. Loans come from banks, not from Dad’s pocket. Even more, he wanted his daughter to think carefully about what she truly needed. A new baby requires diapers, sleep, and care… not a kitchen remodel worth the price of a house.
How Susan Buffett took the lesson
At the time, Susie admitted she struggled with his decision. She thought a loan wasn’t unreasonable, especially given her circumstances. But with time, she came to see his point. She later said, “Basically I think he’s been right.” The kitchen could wait, but the lesson stuck. Her father had shown her that wants and needs are not the same, and that managing money with discipline is an act of responsibility.
That lesson filtered into her later life. Today, Susan Buffett is known not for lavish spending, but for philanthropy. She chairs the Sherwood Foundation and the Buffett Early Childhood Fund, focusing on education, social justice, and childhood development. She learned to value money as a tool for long-term impact, not for indulgent remodels.
His philosophy was clear. If you want something big, you save, plan, or take out a loan like anyone else. Wealth does not eliminate responsibility. He wasn’t stingy, however; Warren Buffett made sure to gift each of his children $90,000 worth of Berkshire Hathaway stock, and has donated nearly $3 billion worth of Berkshire stock to each child’s foundation over the years.
Will people catalogue him as a Scrooge for not handing over money to his daughter? Probably. However, few people can tell they have donated billions to charity. Was an exorbitant kitchen remodel a dire necessity. Probably not. As the old saying goes: Money talks, wealth whispers. Next time you see a brand new kitchen, just question yourself… did they take out a loan for these marble countertops?