Five financial management mistakes by parent

Almost everyone has made mistakes over the issue of money especially parents .Most parents made some common mistake when educating children about finance and how to fix it. Here are some frequent mistakes parents.

finance-parent
1. Be a human version of the auto teller money machine
Managing the transaction make you look like a human version of the engine manufacturer money. You should give an allowance, and ask them to pay for any who wish they had. Whether to buy books from stores or get your favorite toys, the child should be wise in making payment itself. Action may reduce their murmuring of allowing them to hone skills in computing or mathematics. Through the same way, children can learn from their mistakes. By making the payments themselves, the children will appreciate the items acquired or purchased.

2. Miss the daily lesson

Do not miss the opportunity to talk with children about issues on the economy. When shopping, parents can explain why the action to choose lower-cost packaging is better. Explain why adding stocks groceries when sale season is a good action. Give an explanation to the children that the saving per week, per month and per year.

| TEACH FINANCE TO YOUR KIDS |

3.  Does not involve the children in long-term goals
Money management involves two important points. First, to plan ahead and second, to make a choice. If you’re planning a vacation, tell children about budgeting issues involving the cost of airline tickets, entertainment and accommodation. Assuming there is little money, put money into the bank and show the children how the money is increased.

4.  Missed opportunity to provide its motivation of the savings habit
If there is a chance, show the children how things work and why a financial plan contributions or saving a little money is important in the long term.

5. Does not explain how credit cards work

Teenagers who fail to understand or deal with credit card debt as early as age 18, are more likely to face major problems in the future. Allow children to practice using a prepaid card or debit card in advance. Such cards offer the convenience of setting a weekly limit of restricted cash. Parents can also use the money get the status via e-mail and determine whether or not discussions continued to educate children so they are more prudent when shopping.

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