Financial Mistakes Parents Make

It is not easy to be a parent. Financially, it isn’t easy either. You may feel like you have to work as much as possible to support your family. If you are staying at home with your children, you may feel guilty of not bringing in any income to help your family.

However, that isn’t all. Many parents make some serious financial mistakes that can affect their future and their children’s future.

Here are some financial mistakes that many parents make (that you should avoid).

Not teaching their children about money. Children learn from their parents, whether they know it or not. This includes how to handle money. If you grab your credit cards to pay for your essentials, they will do the same. If you use them to buy things that you don’t need, they will also spend money, whether they have it or not.

They can also see how you handle money the other way. If they see you work overtime when you need to, they won’t be afraid to put in some extra work when they need something!

Avoid talking about money. Many parents try to shield their children from the reality, especially when it comes to money. However, how else are they going to learn? You need to be comfortable talking about it.

When they get money for the holidays, talk to them about it. Are you going to let them spend it wisely (or unwisely)? Would you prefer that they try to save some (or all of it)? Talk them through all of these decisions so that they are prepared to figure out their finances when they are older.

Spoiling them. Many parents want the best for their children, and they are quick to buy them whatever they want, from the newest video games to brand-name clothing and shoes.

However, this isn’t the best for them (or you). It can be really hard on your wallet, and it also teaches them that they deserve and should get everything that they want.

Instead, try to teach them how to earn what they want. You may start giving them an allowance for the chores that they do. It might also be a good idea to show them how to sell some toys and clothes that they no longer want. When they are old enough, it is time for them to get a job. You want your children to be proud when they are finally able to get what they want.

Not having an emergency savings fund. The sad truth is that most people don’t have any savings to help them when something goes wrong. However, it can be even worse for parents. You don’t just have to support yourself if you lose your job. You have a family who will still need to be fed, even if you don’t have a paycheck coming in.

What happens if something happens to your car? Could you afford to fix it or are you going to need to take out a loan to get a new one? What if your child needs braces or has an expensive medical condition? Can you afford to do what is needed? You need to have a decent amount of money saved up to help you get through the lean times.

Taking care of your children long after you should. Too many children live with their parents long after they should have moved out. Though there is nothing wrong with this, you shouldn’t continue to give them everything that they need. They need to get a job and help you pay your mortgage and grocery bills.

As a parent, the worst thing that you can do is not to teach your children anything about money or be comfortable talking about it with them. They need to learn how to handle money, or they are just going to blow everything that they make!

You also don’t want them reaching for their credit cards whenever they think that they need something. It is much better to teach them how to budget their money in order to get what they want.

You also need to have an emergency savings fund. This will help with any unexpected expenses that may occur, as well as support your family if you happen to lose your job for some reason.

Previously published on Medium and/or Newsbreak.