Overspending Habits of Children

Parents want to provide their children everything, and that’s a very natural reaction. They want their child to have a life, which they were not fortunate enough to have. Kids today have different needs to stay ahead and competitive in the game, which is why their needs can be pretty expensive too. You may or may not always know what is good for them, most of the time you will have to rely on your kid’s decisions. Generally, they tell you that they need to buy something and you give them money accordingly. In the beginning, you keep a track on their expenditure, but gradually you don’t concern yourself much about it. That is fair and understandable but every once in a while, don’t you get thoughts such as “how much money is enough?” Or “Are they using it right?”

Remember, just like adults, kids have their needs too. These needs will probably be futile from your perspective, but from their’s, these are of utmost importance. Vocalize it and understand them. Money plays an important role in shaping one’s personality. Depriving them of it is not a clever way to go. Make sure to give them 10% extra amount excluding their basic needs as pocket money. Ask them to save it for the things they want to buy in future, for example, video games. Refrain yourself from giving them expensive gifts. At times, they may ask you for extra money for their school work. Provide it but keep track of them with bills or any other means. Keep a keen eye if the pattern becomes repetitive.

How can your children misuse money?
Online Shopping and Gaming:-

Online shopping is quite handy nowadays. People don’t want to go to stores and shops, as everything is available online. Pay extra attention to any online activity by your account. Go through transaction statements every now and then. Your teenagers are likely to buy things and erase traces of it by deleting your messages etc.

Overspending on Peers:-

Providing kids with pocket money is necessary, but sometimes you may lose track of how much is enough. Children seek approval and acceptance from their friends and in order to maintain it, sometimes they do it by spending money on them, to show their power and dominance. In some cases, it can also be a result of getting bullied by classmates, so watch out for the signs. Are they staying out too much? Is there a sudden ‘’assignment’ they require money for? Watch out for such signs.

Teach them to Earn and Save:-

There is more to life than satisfying basic needs. We want more, so do children. Instead of giving them that right away, ask them to earn it. They don’t necessarily have to take an outdoor job but they can earn by doing household chores which generally they don’t. Make sure that you don’t mix family responsibility work with earning work. There is work, which they have to do as part of regular family work and there is extra work for which they will get paid by parents. For example, cleaning the garage. This will not only teach them valuing money but also help in developing their personality for the long run.

Saving –

Saving money is as crucial as earning it. One may earn money and immediately spend it for short-term gratification, but our goal here is to teach them how to respect and manage money. So, instead of promising them to gift it on their birthday, ask them to save it and buy it on their own. The sooner this habit is established, the better the results will be. Also, make sure that you are not gifting them anything expensive on birthdays; gift them something which is useful for them but not as exciting as new play station.

Parents should understand that it’s their duty decide on how they want to shape their children. Yes, your kids will have complaints with you, they will compare you with other parents, call you names and say some hurtful things but keep in mind, you are teaching them for a better life even if it makes you feel low, for now. Accept it. You are doing the right thing.

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