Every Christmas Warren Buffett gave $10K to his daughter-in-law, but she spent it all. 5 ways to use your own windfall

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Warren Buffett is known for his generosity — but also 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.

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In a 2019 ThinkAdvisor interview, Buffett's former daughter-in-law, Mary Buffett, recalled when he would gift her $10,000 in hundred-dollar bills (1). She reminisced, "As soon as we got home, we'd spend it — whooo!"

As the king of investing — not spending — however, the former CEO of Berkshire Hathaway soon decided the gift of shares would be a better investment for his family's future.

According to Buffett's three children — Susan, Howard and Peter — they were raised in an upper-middle-class lifestyle despite their father's growing wealth. In a 2026 CNBC interview, they shared that they took the bus to public school, did chores to earn their allowance and all had jobs (2).

"We grew up expecting nothing, to be honest," said Howard.

But the Buffett heirs said they're grateful for what they consider a normal childhood.

"We were certainly very fortunate," Susan emphasized. "We didn't need anything."

In a 2024 letter to Berkshire shareholders, Buffett expressed admiration for his adult children's perspective (3): "They enjoy being comfortable financially, but they are not preoccupied with wealth. Their mother, from whom they learned these values, would be very proud of them. As am I."

While you may not have a rich relative, you might be lucky enough to come into some cash, as Buffett's family once did. Follow these tips to use it in a way the Oracle of Omaha would approve of.

1. Park your cash in a high-yield account

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 4% monthly compounded rate for 10 years, it would have grown by nearly 50%.

Believe it or not, rates like this are relatively easy to find — and can help take the sting out of inflation while keeping your cash liquid.