As a parent, I recognize that money equals security.
Well, people with even a little bit of money don’t go hungry.
I agree that money doesn’t equal happiness.
But reducing any source of stress is a win, especially when it means we can feel confident about our basic needs.
So what are you teaching your kids about money?
Here are the worst money habits you can teach your kids!
Budgeting without Kids
I really believe in having a strong budget, but if you aren’t sharing the process of budgeting with your kids, you are doing them a great disservice.
Great money management isn’t taught in school.
Strong money skills are comprised of everyday habits. They are simple, but you must be consistent in them.
Include them as they get older so they can see how much things really cost.
Skipping a budget is tempting, especially if you are comfortable financially.
But this is a huge mistake because your kids will not be learning the habit of keeping aware of how much money they have at any given time. This is dangerous because it is very easy to live above your means!
They also won’t learn how to track their spending. This is a valuable skill used for setting a realistic budget!
When you set the example of creating and following a budget, you are also teaching your kids how to discern between want and need. This ability is key to making good choices!
Creating an Unrealistic Budget
I know I am guilty of creating a budget that was unrealistic from the start so it was no surprise it always failed.
Good budgets have several key factors:
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When your budget is weak, you are teaching your kids to lack financial fortitude. You are teaching them it is normal to live with financial anxiety, that emergencies are devastating.
And let me be the first to admit:
When I have financial worries, it’s so much harder to connect with my kids. It’s really hard for me to laugh with them. That’s not the mom I want to be.
Having a strong budget allows you to save for emergencies. It allows you to save for celebrations.
When your budget is strong, it shows that while financial hardships are unavoidable, financial fortitude can keep them from being devastating.
Not Teaching About Passive Income vs Active Income
Passive income is any income you don’t have to put much effort into on a daily basis. This can range from investments and savings accounts to real estate or owning a carwash or laundromat.
Active income is any income from employment or skills and services.
Passive income is an essential element to building a secure financial future because it creates revenue streams that require very little effort.
No Emergency Account
Creating a savings net to keep for emergencies is a huge mistake.
Not only does an emergency account allow you to prevent stress in knowing that you are protected in case the worst should happen, but it also teaches kids that we can just sit on money.
That we can have money that we have no particular use for other than it makes us more secure to have it.
Having the Wrong Mindset
Most people simply see money as a way to acquire things. That’s an oversimplification.
We really need to teach our kids to see money as security.
We need to teach them that money is a representation of your time and effort.
Money takes on much different importance when we see it as a part of ourselves that we toiled for. And double for when you see it as a protection, instead of an xBox or whatever.
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Hi! I am Ali, a homeschool mom who is passionate about science, managing my money and time well. Unfortunately, with an army of tiny faces, I am always still kind of a mess.
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