There are certain mistakes that many parents make when it comes to teaching about finances, saving, and kids credit cards.
The role of parents is to be the best example for their children and lead them on the right path and make them independent adults.
The goal is to teach children good manners and habits and prepare them in the best possible way for the future so that it is carefree and debt-free.
We will single out 10 mistakes that you must avoid if you want your children to become financially stable and independent adults.
- Avoiding teaching children about the money
Many parents make the mistake of avoiding talking about money and teaching it, thinking that they don’t need to bother their children with it.
Therefore, you must start talking about finances with your children as soon as possible, teach them, and guide them on the right path so that they become independent adults.
- It is a school job to teach them about money
This is also one of the big mistakes that many parents make because they rely on schooling.
However, most schools do not teach finance, investing, or money in essence.
It is very important to instill in them the right habits of saving and rational money management to best prepare them for the future.
- Giving money whenever the children want it
Some occasions are unique and when you can give them money, such as birthdays, and holidays, and when they deserve it.
Children will then find it completely normal that you always give them money whenever they want and save them from debt when necessary.
- They are too young to learn about money
Children are never too young to learn about money. Experts advise that it is best to start teaching them about money as soon as possible.
When children learn something from a young age, it will become a habit.
Finances are one of the most important secondary things in the world that every parent must teach their child.
- There is plenty of money
When you get your child used to always having plenty of money, they will rely on it.
It is difficult to motivate and encourage these children to fight for themselves later in life.
Because they will require you to always save them when things go downhill.
You have to explain to them that money is earned by hard work and that it does not fall from the sky.
- Needs and wants are the same
One of the basics of financial literacy is to teach children the difference between needs and wants.
Children need to know that there are more important things that parents have to spend money on such as rent, credit, food, drinks, clothes, shoes, and many bills.
Sometimes parents can fulfill a wish, but everything must be within normal limits.
- Credit cards are bad
Many parents have an aversion to credit cards because they think that if they reveal them to their children, they will fall into debt in the future.
Credit cards for children are one of the best tools for teaching finances, saving, investing, donating money, and household chores or similar obligations.
If they learn to use them correctly, you make the future easier for children and enable them to be stress-free.
- Investing is for adults
It may be strange to some parents that there are offers on the market that allow children to invest in real-world stocks.
Some parents think that investing in shares is too complicated for children and that they can learn it only when they grow up, which is not the case.
Children can invest small amounts of money in their favorite companies such as Netflix and Apple.
- All children have everything
You have to teach them that not all children are as lucky as they are to have everything.
By everything we mean a warm home, food and drink, clothes, toys, and summer and winter vacations.
Children need to know that some do not have any of the above, even though it will be a shock to them, in this way you teach them social sensitivity.
- Payment for doing chores
Of course, you can make tables of chores and duties that must be completed within a given time.
However, it is preferable to reward them and pay extra money if they find a part-time job or help their neighbors.
In this way, you teach them that you will reward them for their hard work, and not for what is expected, which is cleaning the room, and bed and helping with household chores.