Would you let your kids make money mistakes? As parents we want to make our kids lives as easy as possible, but at the same time we want to teach them how to be responsible and accountable for their own actions. How’s that going for ya’ll? Sometimes I find myself stuck between a rock and a hard place when it comes to teaching my kids what’s right versus letting them learn the hard way.
When it comes to money I’m going to try and lead by example. If my kids make money mistakes and get into financial hardship somewhere down the road I will do my best to teach them how to fix the problem, but I won’t bail them out. That’s too easy.
Here are threes reasons to let your kids make money mistakes:
They will learn from the mistakes
Well here’s hoping. Sometimes you can talk to a child about money until they’re blue in the face, but the only way for the information to stick is for them to learn from experience.
If you’ve ever experienced financial struggles you know that it’s the worst kind of stress to have because money (whether you have it or not) affects every part of your life. If your child gets into debt and works hard to pay it off, once they become debt free they’ll never want to go back to being broke.
It will teach them how to be financially responsible
There is no other way for your kids to improve their less-than-perfect-financial-situation other than changing their habits. Actually there is one other way – you could encourage your kids to marry rich, but that’s probably sending the wrong message.
In order to afford the lifestyle your kids want to have, save money to buy the things on their dream board or pay off their debt they will have to change their habits. Those habits will stick with them for their entire life and it will help your kids avoid making financial mistakes in the future.
They will learn the value of a dollar
When your kids are young (like mine are) money is a magical thing that their parents exchange for new toys, clothes and food. Until they start working for it I’m not sure that kids actually understand the value of a dollar. However after they graduate college, enter the real world and start paying rent they will quickly learn that money doesn’t grow on trees.
When your kids work to earn their money they will hopefully appreciate it more and think twice before spending it on wasteful things.
Would you let your kids make money mistakes?