Seven Mistakes When Teaching Your Kids About Money

According to a survey, one in three parents is more willing to talk to their children about drugs, alcohol, and sex than about money . How t...

According to a survey, one in three parents is more willing to talk to their children about drugs, alcohol, and sex than about money. How to ensure that your children do not make the same mistakes of their own when managing finances?

Many research in the world says that most behaviors and the educational level of parents are a determinant of quality of life and social inclusion of children. In financial education the case is no different, children will retain the same patterns of behavior against money as parents. 

Seven Mistakes When Teaching Your Kids About Money
If you do not want your kids to make the same financial mistakes you often face, consider these seven that financial planning experts, Lenox Advisors Inc., identified. 

1. Buying everything you want

Once your child is old enough to get an allowance, that is about six years old, you should teach him that the money he gives you should also use it to buy the things you want. This will force you to distinguish between needs and desires, and it will be with your money that you must satisfy them. For example, do not make the mistake of giving a jacket too expensive, you can negotiate with your child and set a budget so that with your allowance complete what is missing and can buy it. 
Also read: How to Save Money When You're Young Adult

2. Not Talking About Family Financial Situation

Keeping your older children out of conversations about money is a mistake many parents make. At age 13, a child is old enough to give an opinion about certain financial decisions, as well as feeling that they begin to trust him as a fundamental part of the family. For example, when planning a vacation, you can include asking what is the best option for him according to all the financial advantages of each. 

3. Talking too much about the financial situation

Especially in difficult economic situations or when there are issues of a couple in between, it is better not to comment or to tell the child much about the situation, because you may feel guilty. For example, telling a child how expensive a divorce was or how difficult it is to support a family can lead the child to create fears about money. 
Also read: How To Multiply Your Money Every Year

4. Remember that you buy things for something 

If you decide to purchase the toy of your dreams to your child, do not expect more than a kiss, a hug and thanks for him. It is not good to remind you all the time that it is you who buy one or the other thing unless it has been a negotiation made before. 

5. Paying for homework 

The goal of giving your child an allowance is to teach him to have a budget and to save, but that should not be used as a bribe to get him to do the tasks, which at the end of the day are his obligation. Of course, this means that holding the allowance to punish bad behavior is also poorly done. Look for another way to get him to do all the chores, but not the money. 

6. Being the only employer of your child

In Britain, as long as you have a parental leave, the minimum working age is 13 years, and you are responsible enough to take on some household tasks. For example, you can encourage him to offer to go for bread and milk to the neighbor, to fix the garden of the house, to take care of the children of some familiar, among others. In this way, he will become familiar with authority or "boss" other than mom or dad.

7. Delivering money at the wrong time

One of the teenagers' personal plans is to go shopping. At this point in life there is a way to help them resist temptation and control their impulses, do not hand over the allowance on Friday, and this will lessen the probability that Monday will dawn on nothing. Instead, turn it in on Sunday to help you act in moderation and to make your budget for the entire week

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