9 worst money habits parents unintentionally teach their children

1 . Indulging in immediate gratification

One way to remain broke is to constantly give in to temptation. How so? Well, whenever we give in to temptation, we lose another chance of saving those previous dollars. If we allow our children to see us fall in love with an item at first sight and buying it right away without giving second thoughts, they would expect us to buy what they want right away as well.

What we want to teach instead, is to model for our children and wait at least a week and explore our emotions. Other ways to model a more desirable behaviour is to commit to saving for an item or a big expenditure (even though we have the money), rather than spending on it right away. By doing this, we lessen the amount we spend and we teach children to delay gratification.

The ability to wait is a valuable trait when it comes to money.
Investing is about waiting.

2 . Living a lifestyle that does not match their income

This is mainly for those with low to medium income. Some parents spend thousands of dollars on enrichment classes for their children even though they barely earn more than $6,000 combined. Some parents also spend way too much for a childcare service, way above their budget, because they want the best childcare for their young ones. On the other hand, saving up those thousands for their child’s University education would have been a better choice. Some parents buy expensive cars and patronize fancy restaurants but they are barely surviving financially. They are indirectly showing to their children that it is okay to spend more and save less.

A better thing to do is live a moderate lifestyle that matches with our income. Not only will it teach children that the value of things is not in its price but rather in what we can derive from them.

3 . No savings for rainy days

The previous point leads to this point. When parents do not save for rainy days, children will not see the importance of having an emergency fund. They will take this precarious habit into their adulthood.

Always try to save up for rainy days.

4 . No money set aside for long-term investments

Let’s understand once and for all that the best way to ensure a good retirement income is to start investing early. If we do not teach our children about this very important financial tip, they are not going to be able to grow up being ready to plan for their retirement at a young age.

Investing should be everyone’s goal. The goal should come first, the how will follow later.

5 . Only seeking family fun or happiness from material things or expensive activities

It’s undeniable that we want the best for our family. But many times, parents forget to show children that what’s best could also be free. We don’t want to teach our kids to put too much value on money.

Connect them with nature, connect them with their inner selves. Show to them that a $70 pair of shoes is enough and that there is no need to buy a $500 pair of shoes. We want to teach our kids that value can be found among less expensive things if we know where to find it.

6 . Relying on credit cards

Spending beyond our means is equivalent to accumulating debt. Furthermore, interest on credit card payments is through the roof. Not only will this affect our own finances, it will also affect our children’s chances of having their university education paid for.

Cut down on credit card usage and try to pay back the balance ASAP. After that, do not use credit cards at all, unless totally necessary.

7 . Staying in a high-paying job just for the money

I know not all of us love what we are doing just to get our monthly salary. But what I’m talking about here is someone who stays in a high-paying job with a considerable amount of stress, unhappiness and frustration. When this person refuses to leave the job because it pays too well, he/she brings back home the negative emotions. Children will see that their parents value money so much such that he/she can sacrifice his/her happiness for the income.

If you are experiencing a considerable amount of negativity in your current job, explain to your children why you need to look for an alternate job. Teach them to value their own sanity over their earnings.

8 . Over-admiration for branded items

Some people dismiss cheaper items which are relatively good, for branded counterparts. They end up falling prey to marketing. Their children will learn to despise unbranded items. Not only that, these children will grow up not knowing how to see the real value of things without the help of brand names attached to them.

9 . Not being generous or giving

One thing we want to teach our children should be to always give. It can be in terms of cash, items or opportunities. What goes around comes around.

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