Warren Buffett used to gift his family $10,000 every Christmas — here are 4 ways to use extra cash

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RegExp("[?&]notifications=1(&|#|$)");"desktop"===y&&i&&b.test(window.location.search)&&(i.checked=!0)};be("ybar-mod-notification",(function(e){var t={isUH3:"crunch"===e.getConfig().ytheme,notifContainer:document.getElementById("notification-container"),notifBadge:document.getElementById("notif-badge"),notifMenu:document.getElementById("ybarNotificationMenu"),notifMenuOpener:document.querySelector("#ybarNotificationMenu + label"),notifDropdown:document.getElementById("notifDropdownContainer"),tooltipContainer:document.querySelector(".".concat(Vn)),notifLabel:document.querySelector(".".concat($n))};t.notifDropdown&&ro(e,t)}))}()}};]]>Gemma LewisMon, September 29, 2025 at 11:19 AM GMT+2 8 min readDaniel Zuchnik/WireImageMoneywise and Yahoo Finance LLC may earn commission or revenue through links in the content below.Warren Buffett is known for both his generosity and his frugality.That might be why he pulled the plug on large cash gifts for his family after learning they were blowing through the money as quickly as they got it.In a 2019 ThinkAdvisor interview, Buffett’s former daughter-in-law, Mary Buffett, recalled when he gifted her $10,000 in hundred-dollar bills. She reminisced, “As soon as we got home, we’d spend it, whoo!”Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's howI'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 6 of the easiest ways you can catch up (and fast)Dave Ramsey warns nearly 50% of Americans are making 1 big Social Security mistake — here’s what it is and 3 simple steps to fix it ASAPAs the king of investing, not spending, however, the CEO of Berkshire Hathaway quickly decided the gift of shares would be a better investment for his family’s future.With the holidays behind us, you may have been lucky enough to get some cash, as Buffett’s family used to. Tempting as it may be to spend it, follow these tips to use it in a way that the Oracle of Omaha would approve of.One of Buffett’s core principles is the power of compounding: where you can earn returns on both your initial investment and its accumulated growth. For example, had Mary invested her $10,000 and allowed it to grow at a 5% annual compounded rate for 10 years, it would have amounted to $16,288.95.But finding the best possible rate isn’t always easy. If you’re willing to park your money for at least a year, you can get a rate of return over ten times higher than a typical high-yield savings account with a certificate of deposit (CD). A CD locks in your funds for a set period, providing stability and guaranteed returns, which the stock market cannot promise.Beyond saving, another way to take advantage of compound returns is through investing.Investing is higher risk than a savings account, but it can also lead to higher returns. That’s why when Buffett started gifting his family shares instead of cash, Mary Buffett wisely chose to retain her gifted shares in a diversified trust, rather than cashing them out.But you don’t need to invest in private trusts to ensure your portfolio is diversified.With Acorns, you get instant diversification every time you spend. Their platform helps you start saving and investing each time you make a purchase on your credit or debit card. When you spend, Acorns automatically rounds up the price of the purchase to the nearest dollar, and places the excess into a smart investment portfolio.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P Futures6,729.50 +33.00 (+0.49%)Dow Futures46,732.00 +176.00 (+0.38%)Nasdaq Futures24,886.00 +159.25 (+0.64%)Russell 2000 Futures2,465.90 +15.50 (+0.63%)VIX15.82 +0.53 (+3.47%)Gold3,846.50 +37.50 (+0.98%)PortfolioSign in to access your portfolioSign inTop gainersCRNX Crinetics Pharmaceuticals, Inc. 45.91 +10.02 (+27.92%)QMMM QMMM Holdings Limited 119.40 +19.40 (+19.40%)EA Electronic Arts Inc. 193.35 +25.03 (+14.87%)SRRK Scholar Rock Holding Corporation 38.75 +4.26 (+12.35%)PPTA Perpetua Resources Corp. 21.16 +2.16 (+11.37%)Top losersCNXC Concentrix Corporation 47.66 -7.33 (-13.33%)MP MP Materials Corp. 68.63 -8.50 (-11.02%)KC Kingsoft Cloud Holdings Limited 15.64 -1.83 (-10.48%)IREN IREN Limited 41.86 -4.43 (-9.57%)OKLO Oklo Inc. 110.53 -8.60 (-7.22%)Most activeINTC Intel Corporation 35.50 +1.51 (+4.44%)OPEN Opendoor Technologies Inc. 8.81 -0.28 (-3.08%)SNAP Snap Inc. 8.27 -0.06 (-0.72%)NVDA NVIDIA Corporation 178.19 +0.50 (+0.28%)F Ford Motor Company 12.01 +0.39 (+3.36%)Earnings eventsMy earnings eventsEarnings eventsTrending tickersTLRY Tilray Brands, Inc. 1.1500 -0.0400 (-3.36%)GPUS Hyperscale Data, Inc. 0.4578 +0.0749 (+19.56%)EA Electronic Arts Inc. 193.35 +25.03 (+14.87%)BMNR Bitmine Immersion Technologies, Inc. 50.50 +0.93 (+1.88%)CGC Canopy Growth Corporation 1.3400 -0.0300 (-2.19%)Top economic events