Thursday, October 23, 2008

Money Mistakes with Children

Top 5 Money Mistakes Parents Can Make by Carmen Wong Ulrich of offers the following errors to avoid with our kids. I couldn't resist commenting on how I think I'm doing :-)
  1. Not talking about money. No problem for us in this category. In fact, I'm a personal finance junkie and have to work hard to find other topics :-)

  2. Being embarrassed at cutting back and saving. Not me. While all my colleagues bought new cars, I drove the 13 year old family car during my first two years of working. I also plan to quit buying clothes for the next ten years.

  3. Not walking the talk. I learned this one when we were failing to get my daughter to eat vegetables, when I wasn't. I now eat the most vegetables at meals:-)

  4. Not taking advantage of teachable moments. I'm sure my daughter wishes I'd give fewer coaching tips.

  5. Not teaching the difference between needs and wants. We may have to put more effort in this area. Even though our daughter is only four, she pointed out that a Corvette is a "very nice car" she'd like us to have.

Personally, I would add one more: letting them learn through experience and small mistakes. For example, I had her make her first purchase when she was three.

For more on Crossing Generations, check back every Thursday for a new segment.

This is not financial advice. Please consult a professional advisor.

Copyright © 2008 Achievement Catalyst, LLC

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