07/01/2015
Common Mistakes When Teaching Money Management

Common Mistakes When Teaching Money Management

When it comes to teaching your kids about the value of money, it may seem very easy to use a “do as I say, not as I do” approach. However, you may be unaware that your children always have their eyes on you, absorbing and learning from the way that you handle your wealth management.

You may also desperately want your kids to avoid the same mistakes that you have made with your money throughout your life. You can help them gain better control over their future finances by making sure you do not teach them these unfortunate, yet common money mismanagement practices.

Impulse Buying

How many times have you gone into your favorite retailer and purchased something purely out of impulse? You may think that these small indulgences do not add up to much. However, you are teaching your kids that your money is easily disposable and not worth saving.

Shopping without a List

Shopping without a list leads to impulse buying. In fact, when you want to show your children how to stick to a budget and make practical shopping decisions, you should always make a list and use it while at the store.

Entitlement

Many parents find it easy to spoil their kids. Giving into your kids’ entitlement issues without making them earn their money teaches them that you are an open checkbook, ready to dispense cash whenever they want. Teach them self-worth and respect by making them earn their money with chores or good grades.

Lack of Foresight

Spending on credit or using cash that you have on hand may satisfy your present day impulses. When you want to show your children that money can be just as powerful tomorrow as it is today, you should avoid spending what cash or credit you have now and save some for the future.

Giving Kids Spending Money

There is nothing wrong with giving your kids spending money if they earn it. However, you can help them learn budgeting and self-restraint if you emphasize that they can keep whatever money they do not spend. They may like the idea of having money on hand to use in the future.

At OptiFour, we value family. Because managing a nest egg for your future remains a top priority, you can trust that OptiFour can help. Contact us today to see how we provide value for your future.

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