7 Mistakes to Avoid while Teaching your Kids About Money
Even if it is the 21st century, many parents still think that it is better to keep their children financially illiterate until a certain age. Well, if you are also among those parents, then you may proceed towards a wrong way. Actually, the more you want to keep your child away from a particular subject, the more he will show interest in that topic.
However, when it comes to the matter of money, then being a parent, you play a major role. Instead of keeping your child away from money, you must teach him money lessons properly. Besides, it has also been observed that even after a parent is willing to teach his child about money, still he is unable to provide proper lessons.
So, here we will discuss some of those flaws and how to avoid them while teaching your child money lessons.
7 Mistakes while teaching your kids about money
- Children should not know more about money
While teaching your children about money, many parents generally say that kids should not know more about the flow of the topic. Now, when you say something like that, then it will trigger a curiosity within those children. Therefore, this is something completely unexpected during teaching your children about money.
- A child can get money easily
This is something completely unexpected if you teach your children like that. Many parents often tell their children that financial stability is important so, no matter what, everyone gets it easily. Certainly, it will ruin the actual essence of earning. At the very initial stage, if you put into his head that one can get financial stability easily, he will hardly think about working hard.
- Only teenagers are able to understand finance
Some parents often think that as their child is merely a baby and have not yet crossed the threshold of primary school so, it is not necessary to financially literate. Rather it is better to provide financial knowledge to teenagers. It is completely a myth because your kids may have already started saving money into the piggy bank.
- Financial literacy can trigger negative emotion
When parents do not possess good financial stability, then they would like to avoid such a topic. One possible reason for it is that the family does not possess stable financial conditions, so parents do not like to discuss it with children. Simply, they want to keep it secret from their children how much debt they have borrowed and how difficult it is to maintain the household.
- It is impossible to stay within the budget
Most of people often fail to stick to their planned budget while going out shopping. Moreover, when parents take their children to the market, they may buy some toys or other things to fulfil their kid’s desires. After a while, when those parents begin to teach their kids money lessons, it is not uncommon that they will say, “Staying within budget is impossible”. It will inspire your child not to follow the budget in future.
- There is no difference between need and desire
Two important concepts of our life are need and desire. Although we can spend money as per the need sometimes, it becomes difficult to purchase desirable things. This is because people want to have those things in life which come in exchange for a high price. On the other hand, need is something which we require to live a day. Although need fulfilment is important, you can’t fulfil the desire always due to high expenditure.
While teaching your kids about finance may create a big issue if you cannot make them learn the difference between need and desire. Your child may hardly discriminate between these two in future. As a result, the expense will increase more than imagined. However, one can fulfil his desire by borrowing a personal quick loan online in Ireland.
Searching for something at a lower price is a waste of time
From the very initial stage, you must teach your child that he can purchase something from the shop in exchange for money. While making a purchase, if your child wishes to buy something beyond your limit, the concept of need and desire comes into place. Instead of telling him to search for something cheaper, you are wrong if you tell the kid it is a waste of time and money to purchase low-price things. He will hardly learn expense management in this way.
4 tips to avoid mistakes while teaching financial lessons to kids
- Talk about finance freely
Even if he is a child, but you should not underestimate him. Instead of making financial lessons taboo, make them clear to your child. Let them know what is called debt? Different types of denominations, various ways to save money and what are financial mistakes you have done?
- Teach him how to earn money
Instead of portraying the picture of easy earning, it is important to make your child understand that even a single pound is hard-earned. When your child can understand how difficult it is to earn money, he will be able to value money.
- A child should possess basic financial knowledge
It isn’t very meaningful to think that financial literacy is not important for children. Rather, your 5-year-old child also should know the differences between denominations. He should be able to identify a 1 Euro note and a coin.
- Even if financial crisis talk about it
Nowadays, the financial crisis is very common. Due to sudden unemployment, many people are suffering from a financial crisis. So, if you are also suffering from such a financial crisis, talk about that without any hesitation. It will help them to understand how to do crisis management with a limited amount of money. Cite an example of your own expense management strategy.
Above all, you must teach your child how to stay within the budget. He must know failing budget is not at all a good practice. So, try to teach these important financial lessons and make it clear to your child to cope with expenses.