Parents often do not know where to get money to meet all the needs and desires of children. So that there are funds for food and other needs. Do not spend them all on toys and other items for the child. You must handle them correctly. Most parents make gross mistakes concerning finances. Here are the most common Money Mistakes of Parents.
Buy too Expensive Items (Money Mistakes)
Parents should understand that if there is a cheap thing that is identical to an expensive one, there is no need to buy an expensive one. If you will understand the difference between needs and desires, children will not constantly ask you to buy them one thing or another.
If you are convinced that only branded clothing is considered good, children will subsequently also demand only such clothing. While much cheaper, good quality clothing can be bought. The older the child, the more expensive things he will demand.
Invest all Money in Education (Money Mistakes)
If you want to send your child to a paid institution, you do not need to choose the most expensive and invest all your money in it. Even if the college or university is paid, some of the money a child can invest for him, getting a job. The work is different. Not everyone needs to be present from the morning tonight. Students usually work half a day or only in the evenings.
If you invest all your available money in a child’s education, you can be left with nothing yourself. You never know what can happen. Situations are requiring an urgent investment of money. In reserve, you should always have a certain amount.
Buy Overweight Items (Money Mistake)
If the first-born was born to young parents, they consider it necessary to surround him with everything necessary. And they buy this necessary in many copies, spending too much money on it.
For example, there is nothing wrong with buying a beautiful stroller or clothes for a child. But, if you buy them every few months, this is no good. Young children mostly only sleep. They do not need heaps of fashionable designer clothes.
Avoid Talking Money with Kids (Money Mistake)
If you never talk about money with children, children will not understand what and how much it costs, and will constantly demand more and more new toys from you. Do not think that they are too small and do not understand anything, you can teach your child money from an early age. Preschoolers and children 10-12 years old are quite capable of understanding the main financial issues and taking responsibility for the purchase of certain things or products for the home.
It’s nice to give children some pocket money so that they buy what they want. If they want something more expensive, but they don’t have enough money, do not add. Let them get along with what they have.
Avoid Accident Insurance (Money Mistake)
This question is, of course, controversial. People are so hopeful that they don’t even like to think about such things. However, you do not know what will happen in life. If you are insured, you can not be afraid that with the worst outcome you will remain disabled without a livelihood.
Do Excessive Work
To have more money, you need to work harder. But all the same, money does not make. In this case, both physical and mental health has its limits. If there is no health, you will not be able to work at all. It is better to work less and stay healthy than to tear and lose both health and the ability to earn.
Show the Wrong Example
Besides, how to talk with children about money, you must also show with your example of how to spend it correctly. Some parents teach children to spend money economically, while they buy expensive gadgets and clothes, spend money on expensive foreign trips and other desires. Children don’t remember better when they hear, but when they see. If you handle money correctly, then the children will follow your example.
Now that you know the mistakes in handling money, you can correct yourself and learn how to save and how to avoid Money Mistakes, as well as teach children how to handle finances and learn about their value.