Top 12 Money Mistakes Parents Make: Goals

Goals?  Seriousely, now it’s all about goals?  It’s like the list of ways to mess this up go on forever, am I right? This is a pretty easy one, so just bear with me. Kids are not natural savers.  They aren’t born with the common sense to save something for later.  Usually, in fact, the only way to convince them to delay gratification is to promise them a greater reward later, and then deliver when …

Top 12 Money Mistakes Parents Make: Chores

Here’s a question that comes up a lot: Should we pay our kids for doing chores? We also get these: Should we ONLY pay our kids for doing chores? Should we NEVER pay for chores? Clearly, this is a hot button issue, and unfortunately, it’s holding a lot of parents back from getting started in teaching their kids about money. The answer is really easy, and should make intuitive sense to most parents. Pay for …

Top 12 Money Mistakes Parents Make: Consistency

As a parent, I know that one of the hardest things to maintain is consistency. It’s hard to be fair. It’s hard to keep an even keel. Especially when my kids are really challenging, and at opposite ends of my parenting spectrum. Are you being consistent? This is where consistency comes in. It’s really, really important to be consistent when teaching kids about money. They pick up on this stuff. If you’re paying an allowance, …

Top 12 Money Mistakes Parents Make: Too Soon

No, this mistake isn’t about teaching kids about money starting too soon. It’s about giving too much freedom too soon. Like all things in life, kids learn a bit at a time, and they learn best when they’re allowed to make some mistakes (and they have to be somewhat painful mistakes) so they gain some experience and move on. How do you know if it’s too soon? This is the tricky part. You want your …

Top 12 Money Mistakes Parents Make: Waiting

One thing that holds a lot of parents back when it comes to teaching kids about money is not knowing when or where to start.  They want to figure out a plan, and then figure out how to talk to kids about money, and then wait until the kid is ready to handle money, and wait, and wait, and wait… What are you waiting for? In truth, there’s no reason to wait.  You’ve got this! …

Top 12 Money Mistakes Parents Make: Communication

A common mistake parents make in teaching their kids about money is failing to make regular communication part of the learning process.  I know, I know – nobody wants to talk about money.  It’s just not something we do.  But trust me on this one: your kids need to be comfortable talking to you about money if they’re going to learn how to manage their financial lives. (And you’re going to have to be comfortable …

Top 12 Money Mistakes Parents Make: Control

Toddlers and teens have a lot in common. They’re moody and don’t really know what they want. The reason for this, of course, is that they are struggling for control. If you think about the discussions and interactions you have with your teen, quite a few of them can boil down to being about money in some way. Money for clothing, money for the movies, money to buy a car… what if you could eliminate …

Top 12 Money Mistakes Parents Make: Fear of “Budget”

If you tell someone they need to go on a budget, they usually react in about the same way as if you were to tell them they need to go on a diet. But in the same way that diet really defines what we eat, budget simply defines what we spend. The good and the bad. Budget is NOT a four-letter word! Diet still is (I’m just sayin’).

Top 12 Money Mistakes Parents Make: $1 Per Year/Week

  If you’ve ever done research on kids and allowances, you’ve probably come across the idea of giving kids $1 per year of age, per week. A 7 year old would get $7 a week. You’re about to hear what we think of that idea! Care to guess? Regardless of the amount you decide to give your child as an allowance, it should never be an arbitrary number. Decide FIRST what the kid will be …

Top 12 Money Mistakes Parents Make: Savings

Today’s topic: trying to resolve the long-running argument parents have with teens over savings.  Parents want savings to be for college, or a car, or something big.  Teens usually want to spend savings on an iPod, or something fun.  And forget trying to get a little kid to see the value in saving for college, when all he wants is some Pokemon cards… Savings: Short-Term, or Long-Term? The easy solution is to have two savings accounts: …