Disclosure: Consideration was received for the editing and publishing of this article.
You may be an excellent parent. But with regards to money and finances, you may make a few mistakes. Most adults don’t start off with perfect finances. Mistakes are common and understandable. Maybe you didn’t have a good financial role model growing up, and you learned how to manage finances on your own. Despite your background, you can avoid financial difficulties and get on the right path. To do this, you have to recognize your mistakes.
Whether you’re looking to improve your finances or set a good example for your kids. Here are five money mistakes to avoid.
- 1. Overindulging your kids
If you didn’t have much growing up, you may lean toward giving your kids whatever they want – regardless of whether you can actually afford the items. However, giving into your kids’ every request can leave you broke. It’s okay to shower your kids with gifts, but do so in moderation. Being a good parent doesn’t mean saying “yes” to everything.
- 2. Paying for services you don’t need
If you’re working and raising a family, you might hire a professional to mow your lawn, wash your car or clean your house. This frees up your time. But if finances are tight and you have nothing in savings, is it wise to pay for certain services? Evaluate how you spend your money. Let’s say you spend $200 a month on extra services. That’s $2,400 a year that could go into your savings account.
- 3. Not comparison shopping
You probably shop in a hurry. But being busy isn’t an excuse to skip comparison shopping. It only takes a few minutes to head online or check the newspaper for discounts. If you need to buy a wedding gift or a few items for the house, a search for a Williams Sonoma coupon code can save you money. Comparison shopping also makes financial sense when you’re booking travel reservations, dining out or shopping for clothes.
- 4. Not teaching kids how to save
Don’t wait until your kids are nearly adults to teach the value of a dollar. Get your kids into the habit of saving early and it’ll become second nature. There are easy ways to accomplish this. Before grocery shopping, have your kids check the newspaper for Coupons. If they have their eyes on a particular toy, demonstrate how to watch for sales and compare prices with the competition. And when your kids receive their allowance, don’t let them spend all their money at once. Purchase a piggybank or open a bank account and have your kids deposit 10% of their money.
- 5. Overspending with credit
Pulling out the credit card for every purchase can increase your debt. Using credit cards build your credit history, but there’s a trick to this approach. Give yourself a monthly spending budget, and always pay off the balance at the end of the month. If you can’t handle a credit card, leave it at home.
Changing your mindset is key to better money management. Avoid giving your kids the wrong idea about money, and take steps to set a good example.
Great advice and tips! Thank you for sharing!
sara m ford says
we try and save and teach our kids to save but its so hard the prices are way up any more
laurie damrose says
My kids have chore to do and they get an allowance every week.
Jana L. says
Good tips! Kids these days don’t know the value of saving up.
Ruth Hill says
These are all great ideas. My trouble was that I was an emotional shopper rather than an emotional eater, and that is how I deal with my unhappy marriage.
Shawna Snow says
Good to know
Great article. I’d also add: not looking for sales, clearances, and coupons! You’d be amazed at how much money there is to be saved. For instance, my $60 purchase at Target the other day came down to $35 simply because of coupons and choosing sale items over the regular price items (in the case of shaving cream and cereal). 🙂
candess phillips says
These clear commen sense tips are great reminders. We make our kids put half their allowance into savings rather than ten per cent. Remembering that I am being a financial role model is something I need to put greater focus on.
Overindulging children is a great point. Teach them thankfulness. True for the the adults as well!
Kelly R. says
These are all great tips. We definitely need to teach our kids the value of saving over spending.
Mary Dailey says
Great advice! I know I’ve made my share of money mistakes and I don’t like keeping on making them. I’m trying to learn from my mistakes.
Heather B says
Very guilty of #1! Lol Thank you for this its something we need to work on that I didn’t realize how much went where!
These are all true – I need hep with the teaching kids how to use money and save as well as not using credit when needing to buy something, thanks for the post.
marissa lee says
These are all great tips and advice…I will be teaching my kids these tips when they get older…thank you for sharing.
Sacha Schroeder says
Eek. I am guilty of some of these. Thank you for the advice.
Nicole Becker says
I have a very hard time saying no to my granddaughter so I can certainly relate!!
Maria Iemma says
Since I became a widow I have had to look carefully at all my expenses and I can say that the financial situation has changed radically. I was guilty of some of the mistakes you mention before.
michelle elizondo says
its hard to save
I used to buy tea from McDonalds everyday and didn’t realize how much it cost until we did Quicken for our taxes. It was only a $1.07(which didn’t seem like a lot) but by the end of the year it added up to $390.55. That’s a lot of money. You have given some good advise. Thank you.
Jimmy Arcade says
Right before reading this, I was talking to my wife about how I have no desire to mow the lawn and I was thinking about a kid in the neighborhood I could ask to do it. Then, after reading this, I felt a little guilty, so I think I’m going to end up mowing the lawn after all, this weekend. Ugh… 🙂
Nena Sinclair says
This is great info! Many of the items on this list, I’ve learned firsthand!
Jennifer Hall says
Great advice, we all need to follow these rules.
Great advice! I especially agree about comparison shopping. If I didn’t do that I would spend so much more money needlessly than I do.
gnomy gnome says
I’m so happy my parents taught me how to save money. It’s so important to explain kids that money doesn’t grow on trees. Thanks for the useful tips!
yes, I have learned to cut up my credit cards
Peggy Greco says
Thanks for article; it contains very good advice/tips.
Sherry Compton says
It may be time consuming but you can save a lot by going through ads, checking out blogs, and couponing. My daughter always tries to cut our bills at least in half at the drug store and Walmart. Groceries are harder with produce and meat but we shop sales.
Shani F. says
I think these are great tips. I especially like the one about not overindulging in your kids. I have seen this so many times. Kids often end up not appreciating anything if they are given everything they want.
Thanks for the tips please post more stuff like this it helps.
Danielle Ericsson says
Great tips on an area that I can always improve on.
I don’t mind overindulging kids from time to time. Number 5 seems to be my achilles heel.
Bekah Kuczenski says
These are great tips! I need to start teaching my daughter to savemoney, its such an important life skill!
Great tips, thanks for the post.
Sarah Hayes says
I think Ive learned most of these the hard way but I will def teach my daughter how to make better money decisions. comparison shopping is a great tip. Thats saved me so much money in the past
Kelly Commerford says
Thanks for this post…sometimes we forget that the simplest actions that may seem insignificant can really add up in you favor. It does pay off!
Lee Ann Cameron says
Great advice and tips! Thank you for sharing!
Good to see such practical advice all in one list!
Melissa Erskine says
Great ideas! I involve our DD7 in couponing! I know she’s got it when I hear her say “mommy do we have a coupon for that?” Lol! Yikes I may have created a monster!!
Charlee Hall says
I have made every single one of those mistakes!