4 Money Mistakes You May Be Teaching Your Kids

Kids want it all, and as parents you are tired, exhausted, or just plain sick of them having seizures every two minutes. So you start to give in – once or twice – and before you know it your child starts expecting the same from you every time they have a tantrum. Nothing says “tantrum is the key to mom or dad’s heart” than you give in to them.

You will eventually find yourself spending tons of money in the process. Here are four scary financial mistakes parents commonly make and why you should avoid them.

1. Keep with the Joneses

Peer pressure didn’t just affect you when you were a teenager trying to impress your friends at school. As you step into parenthood, you’ll find yourself falling into the peer pressure trap even before your newborn baby starts saying “mom.”

As parents raising children, you are often invited to gatherings like birthdays or play dates where you meet and socialize with other parents. You might hear parents whine about the misery of their lives while some brag about theirs – from their recent shopping trip to Europe, to buying an iPad for their child just because it is. whether in love, or how to plan an extravagant birthday party for their child is stressing them out.

This is when the peer pressure sets in. You find yourself planning a party you can’t afford or checking iPad prices the next time you go to the mall. These might be things you don’t need at all, but you buy them for the sake of blending in with your “friends.”

It is an easy temptation to fall. There is no end, because once you allow it to reach you, you will never get out of it and nothing is ever enough to compete and replace others. Eventually, excess spending gets out of hand and debt rises. This is not the message you want to send to your children as they grow up.

Be open with your children. Tell them that you choose to spend your money in the following way, because this is what you can afford and you are saving for bigger goals, like sending them abroad for their higher education. You don’t believe that people are more superior because they have more expensive things. Material possessions should not reflect who we are as a person or as a family.

2. Giving rewards inappropriately

In order to get their child to do what he wants, parents start rewarding simple things like doing chores or homework. Before congratulating yourself on finally deciphering the parental code, think about the message you are sending to your child.

Children should be trained to be responsible for their own household chores or completing schoolwork. The allowance should not be given just for doing chores that your children should be doing anyway. In doing so, you are effectively trivializing the effect of a reward for the next time you really want to reward it.

Should you pay your child every time they flush the toilet after using it? If your answer is no, you should stop rewarding them for things like making their own beds or putting their dirty laundry in the laundry basket.

The best way to reward your child is to set an allowance based on their age and needs, and only give an extra allowance for the “extra” help they provide, such as helping another sibling to do so. homework or cleaning the whole house.

Another ‘no’ parents should avoid is rewarding their children for every ‘A’ they get in school. Instead of giving their accomplishments money, make them understand the importance of complacency when you do your best and achieve the goal.

3. Spoil children with the brand

We can all be a little conceited or superficial at times and brands can play a big part in how we want others to see us. And sometimes this behavior can affect the example parents try to set for their children.

Look at the ingredients or materials used in the product instead of just the brand – the product you buy should be suitable and safe for your child. For some parents, this might be the feeling of an obligation to provide their children with something they didn’t have growing up – nonetheless, it should be within an affordable range.

Sometimes you pay too much for boutique clothes or designer clothes for your kid when you spot a sale. Their wardrobe is messy and temporary as they would likely exceed their size in a few months, which is why it is a waste of money spending hundreds of dollars on a pair of jeans for your three year old in full swing. growth.

According to a study by Dr. Stephen Cowan (an American pediatrician with 25 years of clinical experience), indulgence actually weakens your child’s survival skills, deflating motivation and feelings of achievement. Indulgence limits freedom by inflating a child’s sense of rights. Instead of just giving in to whatever they want, it’s good to teach your child the value of being content with all they have over people who don’t.

4. Hidden the price of things of your children

When we were young, our parents most likely kept us away from household money matters. We had clothes to wear, food to eat, and we could afford to go to school, but we didn’t know what sacrifices our parents had to make to provide all of this for us. We never knew if they were having a money crisis – it was taboo to talk about it. Maybe it was until we started paying our own bills that we realized how difficult it could get.

If you plan to raise your child in the same way, how can your child have any idea how much he will need to earn to meet the rising cost of living?

Start with the basics, like restaurant bills when you eat out or utility bills. You can also play a game and let them guess the cost of cars, houses, or clothes. It may be a little too overwhelming for them, but sooner or later they will see the big picture and be better prepared when they are released into the real world.

If you are guilty of any of the above, it’s probably time you changed your parenting strategy to raise a generation that is more financially savvy than you were. Your kids are growing up so fast that you may miss out on opportunities to teach them important things about money. It is crucial to teach your children to understand that while money is important, it is not everything and it does not define who they are.

They should also learn that everything in life should be done for the purpose of personal development and responsibility, rather than just looking at the monetary rewards they might derive from it. Advocate for the right money lessons and they will thank you for it when they start making their own money.

One of the best ways to start educating your child about money management is to open a junior savings account.

This article was first published in 2014 and has been updated for freshness, accuracy and completeness.

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