If you’re a parent, raising responsible kids with a solid financial foundation is a must. There are many people today that were raised to worship plastic and as a result have no savings and no future. To help your kids avoid that same fate, you need to take the time now to really look at your children and determine if they are financially ruined early on. If they are, you can always intervene and stop the bad behaviors before they get out of control.
Your kids care too much about television commercials and opinions
In adults, this condition is referred to as “keeping up with the Jones family”. In children, it’s a red flag that their obsession with status and comparison could turn them into adults with a loose grip on their financial reality.
Typically, kids that care too much about status and commercials wind up being impulse shoppers. This isn’t always a bad thing, but too much impulse shopping can turn into spiraling debt that rages out of control as an adult, which can lead to bankruptcy, foreclosure and other problems.
To prevent this, give your kids an allowance. Once they blow through it, don’t give them any more. Instead, turn it into a teachable moment and explain that if they spend their money on the first stupid thing they come across, they won’t have money to buy the other nicer thing they find down the line. This can help them break their impulse shopping habit and teach them to look around for the best deals.
Your child is late turning in homework or important school papers
While some of this may be simply kids being kids, habitual lateness can be a sign that your offspring isn’t going to be great about paying bills on time, which can lead to financial troubles.
To help nip this nasty habit in the bud, get your child a calendar or a planner and help them track their important due dates. This will not only keep your kids organized, it will also lead to better grades, better college prospects, better jobs, salaries, etc. Organization when they’re young will help them develop better money-management skills as adults.
Your kids are always asking for money
If your child is constantly pestering you for money, it may be a sign that they don’t understand the value of a dollar. Occasionally asking for a few dollars to do something with friends is different than asking on a daily basis for money to buy the latest shoes, CD’s, gadgets and non-essentials.
To prevent this, make sure your kids understand how hard it is to earn money. If they need funds, have them do chores around the house to earn their money and once they spend it, don’t give them more until additional chores are available. Avoid creating chores to give them earning opportunities and stick with a set amount each week.
Being vigilant with your kids at a young age will prevent them from making big financial mistakes as an adult. Watch for these 3 signs that your child is a financial disaster and take the necessary steps to help them overcome their problems so they can lead a happier, more productive life.