Kids absorb the beneficial lessons and the less helpful ones and these are some of the money mistakes financial experts say kids learn from parents and what to try instead.
- Money is a taboo topic- There’s this idea that talking about money is bad, especially if you’re in debt, but that leaves kids in the dark and confused about the right way to manage it.
- Money is always around, no matter what- The financial experts stress the importance of helping kids understand that people earn money by working and that it doesn’t just “grow on trees.” Starting with something as simple as paying them for a chore can help them make the connection that if they work, they can earn money.
- Wants and needs are the same thing- It’s also important to teach kids the difference between wants, like new toys and candy, and needs, including shelter and healthy food.
- Credit cards are bad- Some parents tell their kids credit cards are evil and while you can get into debt with them, the experts advise teaching children how to use them wisely to build credit.
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