Seven Mistakes When Teaching Your Kids About Money9:55 PM
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.
1. Buying everything you wantOnce 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 SituationKeeping 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 situationEspecially 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