Seven Parent Mistakes in Money Handling
When it comes to meeting the needs of the child, parents are often confused. They often cannot plan their finances and make certain mistakes in this matter.
You should not buy things for your children just because other children have them. Buy only what the child needs. This will help him understand the difference between desires and needs and build the conviction that you need to earn money to satisfy needs.
Parents tend to give their children love and happiness and feel satisfaction when they see a smile on the face of the child. When buying children all kinds of things, parents are unlikely to think about how much money they spend on trifles. They just want to provide their children a happy life at all costs.
However, it is important to understand whether you can afford such expenses and plan your finances correctly. If you do not plan finances, this can lead to financial crises and greatly complicate your life. There is nothing wrong with satisfying the needs of a child, but this should not be done only in order to conform to modern fashion or the desire to make a child happy.
Consider the typical mistakes of parents in handling money.
First of all, parents should ask themselves the question: if an inexpensive thing can perform the same functions as an expensive one, then why buy an expensive one? If you yourself learn to distinguish between needs and desires, the child will learn the same from you.
Moreover, if you think that buying only branded items can make a child happy, he will soon think so himself and become dependent on branded things. This dependence will increase as the child grows older. Accordingly, your expenses will increase.
Spending all savings on child education
Paying your child to study at a prestigious university is a good idea, but all your savings should not go into it. The child must try to get a scholarship or enter a less prestigious university. In other words, you need to leave part of your savings to ensure your family a stable future.
Newly made parents often make this mistake: they find many new things on the market and are tempted to buy all this for their child. However, they do not understand that they spend a lot of money on something that is not necessary.
For example, you need to buy a good stroller and clothes for the child, but changing the stroller every six months simply because the old one does not fit in the back seat of the car or because a new model is released is not worth it. Also, children do not need a large wardrobe, in which only branded clothing will be.
Lack of talk about finances with children
If you don’t talk with children about finances, they think that money is an unlimited resource. Therefore, children often believe that they can get whatever they want, no matter how much it costs. Do not think that the child is still too small to talk about money. Children aged 10-12 years are able to understand basic financial issues and can take responsibility for their own small expenses.
Moreover, if you give your child pocket money, offer him to buy for himself what he wants, but you consider it a luxury. Own expenses will help the child understand the difference between needs and desires.
Lack of insurance
While we have no health problems, we do not consider it necessary to take out insurance. However, we can never know what may happen tomorrow. To prevent unforeseen situations, insurance is required.
Sometimes it’s quite normal to work hard to provide for your family. However, it is important to understand your abilities and the extent to which you can take overtime work. When processing, you devote less time to other areas of life and risk your health.
Following the wrong examples
Besides the fact that parents sometimes make optional purchases for their children, they often cannot plan finances in other areas of their lives. Some parents teach their children how to save money and manage money wisely, but at the same time they buy expensive gadgets, spend a lot of time on vacation, etc.
Parents should always remember that children learn by observing the behavior of their parents and not by listening to their morals. Therefore, you should set a good example for your child and encourage him to follow this example throughout his life. Show the child that your words correspond to your actions.
Avoiding mistakes in financial planning, you can ensure a stable future for your family and at the same time give your child an idea of the value of money and the rules for the reasonable treatment of them.