As good as intentions may be, some parents' methods for teaching finances can be misguided. The four most common and how to avoid them are pointed out in a mint.com article.
“I didn’t have much as a kid and I don’t want my own kids to want — or wait — for anything.”
It’s healthy for children to know they can’t always get what they want when they want it.
In 1960, an experiment by Walter Mischel found that children who could wait 15 minutes to eat a marshmallow rather than eat it immediately turned out better. They had fewer behavioral problems, less stress, stronger friendships and higher SAT scores.
“We’re in big credit card debt, but thankfully our kids don’t know it.”
Families in debt tend to have more arguments, shame and whispered secrets. Children can sense this.
A study in the Journal of Family and Economic Issues found that college students whose parents argued about money were three times more likely to have a decent amount of debt and two or more credit cards.
“Working long hours is the only way to give my kids what they need.”
A decade-long survey found that families who ate together at least four times a week had a higher possibility of being financially secure.
“Good parents put their kids’ college costs above all else.”
Maxing out a personal tax-favored retirement savings plan could be smarter financially, according to Beth Kobliner in the Mint article.
“The reality is, although a child can borrow for college, you can’t do the same for your retirement,” Kobliner said. “What’s more, bankrupting yourself for your kid’s college will likely mean he or she will have to take care of you financially when they are in the middle of a major life stage, like starting a family.”