Teaching Kids About Money

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Teaching kids about money is an important roll for parents.

With all of the things we as parents strive to be, such as being practical, being kind, being patient, and 
for some our ability to be good money managers, sometimes we don’t think enough about the concept.

Instead of thinking of ways we need to improve, we should keep in mind that we are all just human, and with peace of mind know that we are on the right track.

Some of the common pitfalls that parents fall into when teaching kids about money are:

Trying to be too competitive with other parents.

We as parents want our kids to be successful and live the best life possible. At times, parents can be compeptitive when striving to give their kids everything that other families give their children. Of course it’s normal at times to have feelings of competition or to be jealous, but it’s important to not let these feelings get you down if you’re not able to do as much as other parents can for their kids financially. Teaching kids about money, especially healthy concepts can help them to realize that money is just a tool, and not the “end all, be all” in life.

If other parents seem to be bragging about the nice clothing or toys they bought for their kids or the eleaborate family vacation that they are taking, just say that you are happy for them, and then move onto another topic of conversation. Remember, it’s more important to make the right choices for your kids out of love and caring rather than showering them with gifts or expensive vacations just because you see other parents doing that with their kids.

Throwing Over-The-Top Birthday Parties

The term “party creep” was born out of parents trying to out do one another when it comes to their kid’s birthday parties. Don’t let the pressure of trying to throw an elaborate birthday for your child take all of the fun out of the event in the first place. Sometimes, when teaching kids about money, it’s better to have a more simple gathering, and be creative by thinking of inexpensive ideas such as simple games such as pin the tail on the donkey or pinatas to make a memorable experience for your child. If your child sees you being creative and making the party fun regardless of the cost, it will be an important lesson for them to learn and remember as they mature. When teaching kids about money, show them ways to be savvy and thrifty while enjoying the process along the way.

Being Overly Nice and Generous

A spoiled child is the result of often times being overly nice, since we may tend to want to give in to their everyday needs and wants. When we respond to their temper tantrums, we end up causing them to have the belief that the world owes them something, and that everything should be handed to them in life. Rather than spoil a child, it’s better to say “no” every once in awhile, just to make them appreciate things in life, and to teach them that sometimes they can’t always get what they want just by asking or pouting.

Grocery Shopping With Kids

Kids in grocery stores can often cause us to spend more than if we were to go shopping without them. Grocery stores typically place items on lower shelves that are eye-level to kids walking by in the attempt to get their attention by getting them to beg and plead their parents to buy that particular item. These items can be unhealthy for kids, especially cereals full of sugar and products highlighted  with cartoon characters covering the item’s packaging.

Parents need to remember that kids watch and often copy what we do. We need to realize that we are not only their parents, but teachers as well, and we need to set a good example for them.  These few small tips in teaching kids about money can go a long way in creating well-rounded, happy individuals that we will be proud of.