Being a parent is challenging. As parents, we try to teach our kids the very best of what we have learned from our parents, and from our life experiences. However, there may be something that we may be doing that we do not realize. Teaching our kids bad money habits.

According to Money Magazine, there are 7 items that we should not do when it comes to teaching our kids about money. See if you are guilty of these money blunders.

1. Shopping at a store without a list- A simple way to stay organized, however when we go shopping without a list, it can cause us to buy things we do not need, or impulse buy. Always take a list with you, this will keep you and your mind on track.

2. Buying on Impulse - every day we are surrounded by ads that tell us that the item they are selling is a must have or that it's on sale and the sale is limited. This causes us to run out and make an impulse purchase. When teaching kids about impulse buying, it is a good idea to tell them to take 24 hours to think about if the item they want. If it is still important to them in 24 hours, then perhaps it is worth a second look. But to purchase immediately just because an ad tells you to do so, could cause money issues.

3. Teaching Entitlement - we have all done this at one time or another. You take the family out to dinner and you tell your kids that they can have anything they want because they were good. Treating your kids is not wrong, but you need to explain to them that you have budgeted for a treat for them. The people that have the most control over their money are family's that go to dinner, in which you pick the restaurant and pick the entree for your kids.

4. Being Focused on the now - If your family is planning on a big adventure, this is a good time to help your kids learn about money. By eating at home versus going out, and explaining to your kids that the reason you are doing this is to save for the vacation, they will take away a good money habit. If you save, you can take the trips you want.

5. Speaking to your kids in Dollars, not percentages- According to Sam X Renick, entrepreneur, and financial educator

it’s important for kids to learn that not only is a nickel worth more than four pennies, it’s worth 20% more. It’s easy not to care about a penny, but 20% seems worth worrying about. And it is. Would they prefer to earn $20 for a chore or just $16? It’s still 20%, and it’s worth saving 

 

6. Giving Kids Spending Money- Just handing your kids money is not the best way to teach them how to be responsible with it. However, if you can instill in your kids that earning the money is a good way to get what they want, and giving them the opportunity to do that. Or if you are on a vacation, and you give your kids money, you could show them responsibility by letting them keep what they do not spend. That will start them on the right path to money savings.

7. Indulging in spendy habits like Starbucks or Cigarettes- When we do this as parents, it show our kids that it is better to spend now than save for later.

Moral of the story. Talking to kids about money can feel strange, but do not be afraid to talk about it. . Simply have a balance that lets your kids be responsible, and does not terrify them into never spending a dime.

 

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