If you have ever struggled financially in your life, you know it’s a terrible feeling. Setting your children up for this is even worse. Luckily, there are things you can do to try and get your kids on the right track financially and teach them how to make a great life for themselves. Here are 12 rookie parenting fails that can derail your kid’s financial future.
Not Involving The Kids In Money Discussions
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Do you hide all talks about money from your children? We are not saying to worry them or discuss things that you would prefer to be confidential, but what about how much the groceries cost, how interest rates are tracking, and where your income comes from (job/side hustle, etc.)?
Failing To Set A Good Example
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Don’t expect your kids to “know better.” Set an example for them that they can follow as they age. Be responsible with money so they can do so as well.
Ignoring Your Emergency Fund
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Make sure you have an emergency fund in place that will help your child if something comes up. If it’s a medical issue or a family emergency, having that emergency fund in place will help the financial future of you and your child.
Not Teaching About Investing
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It is never too early to teach kids about investing. Show them how to do research on a few stocks and let them open up an account and watch their money grow. Young kids can learn this concept and understand its importance well before they have to think about retirement.
Overindulging In Unnecessary Expenses
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Do your kids watch you spend and spend with no regard for what you are doing with your money? If they see this behavior, it will impact their financial future.
Not Encouraging Delayed Gratification
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Saving for something and then waiting to make a purchase is delayed gratification. Give your children small jobs to do and have them save up for a big purchase. If they run to purchase candy each time they get a dollar, they aren’t learning delayed gratification.
Failing To Set Up A Savings Plan (Early)
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Set up a savings account for your newborn. Put a little bit of money in each month; it doesn’t have to be much, but set it up for an automatic withdrawal so that it goes into the account each month.
Not Encouraging Entrepreneurship
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Remember that careers are not the only way to make money. Teach kids from a young age that business ownership, blogs, YouTube automation, app development, and so much more are ways for them to make money.
Acting Like Debt Is Not A Problem
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Don’t purchase things you can’t afford, and more importantly, don’t teach children that it’s ok to purchase things you can’t afford. Debt is a problem, and if you can learn not to accumulate debt, your kids can learn not to accumulate debt.
Failing To Teach About Budgeting
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Budgeting is not something that will be taught in schools. You may find a great teacher that touches on this subject, but it’s not enough. Teach your kids about how to budget so that they can carry that into the future.
Not Talking About College Costs
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College costs are expensive, and your children should understand that. This is not only so that they can help with saving and working towards scholarships, but it’s also so that when they are in college, they respect the gift that the education is. Doing a great job in college will absolutely help make your financial future that much better.
Avoiding Discussions About Poor Financial Choices
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Children pay attention to a lot. They will see people making poor financial decisions and probably wonder about the consequences. Don’t be afraid to help them understand that there are consequences for poor financial decisions. The quicker you learn this, the easier it is to achieve financial comfort and stability.
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