"Do as I say, not as I do."
Ever said that before?
Kids learn not only from hearing, but also by watching what
their parents do. You might be surprised to find that your kids think some
crazy things about money just by watching others.
Here are a few lessons you may not want to
pass along:
Money really does grow on trees. Parents may
tell their kids that money doesn't grow on trees, but when kids get
what they want without having to pay, it is probably a little confusing.
Just a simple conversation about how everything in the store costs money could
go a long way.
Cash is old school. If your kids see that
everything you buy can be bought with a plastic card, it seems useless to them
to learn to handle cash. Cash can be a great budgeting tool and could really
help kids see that once it's gone, it's really gone.
We can always buy what we want when we want it. When
kids see parents deciding to buy a bigger, better TV or a fancy new car at the
drop of a hat, they may start to believe that planning and saving isn't
important. It's important to show your kids how to get into the habit of saving
for big purchases.
The ATM gives free money. Talking through the process
of managing an account is an important step in learning financial basics. Kids
have a tendency to believe the ATM is a free money machine or that plastic
cards have endless amounts of money on them unless you teach them otherwise.
Water and power is free. Kids may have the idea
that the power will always be on and the water will always run if they've never
seen you pay the bills. This lesson can be a great time to encourage them to
turn off lights they aren't using or using less water in order to save money
and resources.