8 spending mistakes of children originate from parents

Parents who are spendthrifts or frugal, divorced or do not teach their children about money can all cause their children to make mistakes with money later in life.

Whether you realize it or not, the way you were raised has a huge impact on the way you make decisions as an adult. This doesn’t mean we should just blame our parents for our financial mistakes, but once you understand the root of your bad habits, you need to make an effort to change them.

Here are eight parental behaviors that can negatively impact their children's money habits and what they can do to overcome them, according to DailyWorth:

Parents are too frugal

Parents always tried to teach you lessons about saving and seemed to deny you everything you wanted to buy as a child.As an adult, you will spend lavishly to make up for the rejection you experienced as a child.

Solution: Talk to your parents about why they save, you may learn more about the reasons that you didn't understand when you were younger. If your willpower isn't strong enough to stop overspending, set up an automatic savings plan.Don't let history repeat itself, if you have children, let them know why they need to be careful when spending money so they know the benefits of saving and don't feel resentful because their parents are "stingy".

Parents use money to spoil their children

Maybe your parents took something away from you (didn't have time for you, didn't give you a family, or simply didn't do something you needed...), and in return they chose to give you money to compensate. You grew up with a life of material abundance and didn't expect anything in return.The problem is that as you grow older, you will not have enough income to meet your spending lifestyle, which leads to unnecessary debt.

Solution: Change your sense of entitlement from having a lot of stuff now to having financial freedom later. Challenge yourself to see what life would be like if you lived simply, then only save for important goals like buying a house, retiring, or starting a family.

Parents do too much charity

Parents invest a lot of time and money in this. You are as compassionate as your parents but the risk is that you will give it away.more than we can afford. Charity is a wonderful and noble concept, but we often get overwhelmed by emotions, leading us to say “yes” too often.

Solution: Decide what is most important to you and create a charitable budget now with the things you plan to do next year. This budget should include a section for unexpected requests that you might want to support. Then, set up automatic payments through your bank to the charities you choose and let the charities know what you expect.

Parents never teach their children about money

This is a common problem, often due to parents not being educated about finances themselves. People think that money is a sensitive subject and are embarrassed to talk about it, so many parents have not talked about money with you.

You may be very foolish in managing your finances, or overspending, or not knowing how to save, not knowing how to invest, or not having a financial plan in general. You do not have a foundation of knowledge about money management, so you will make mistakes.

Solution: Take an education, either online or in person, or meet with a financial advisor. If you have children, talk to them about money and involve them in your financial planning activities.

Without being taught about money by their parents, children are likely to make mistakes when spending money - Photo: AP.

Parents think negatively about the stock market

Maybe because of failed investments, now parents consider the ideal place to keep money is in the house.Also avoid investing in stocks or real estate. Saving money may seem like a safe option, but if you want to retire comfortably, you need to grow your money as much as possible.

Solution: Do your research on all your investments to make sure you know what you’re getting into, whether it fits your goals and risk tolerance, and diversify your portfolio so you don’t take on unnecessary risk.

Parents live wastefully

Perhaps they live as compensation for what they feel was taken away from them in their youth or they don't want to be inferior to others. You thereforealso live beyond your means and beyond your needs. Even if you try not to follow in your parents' footsteps, it still happens. Growing up in a family where everyone lives lavishly, it can be difficult to accept a frugal lifestyle.

Solution: If you can't get away from the temptation to spend, you need to set some constraints for yourself: set up automatic savings, don't spend on credit cards.

Mother dependent

Whether she married one or two husbands, your mother was provided for by her husband and had no financial worries (at least that's what you perceived). And bYou also expect a prince charming to support you financially. “Why should you struggle to make ends meet if your mother doesn’t have to?” This subconscious question often leads to procrastination and irresponsible financial behavior.

Solution: Wake up and end this fairy tale. Don’t wait for someone else to save you, save yourself. The end result will be more satisfying and you can be proud to be a financially independent role model, an inspiration to your children and others.

divorced parents

This is an unfortunate reality for many families and is a big cause of all sorts of psychological problems in children, including poor financial decisions.

The child is determined to live happily ever after, by getting married early, buying a house early, living beyond their means, leading to debt, financial stress - and eventually divorce. The vicious cycle continues.

Solution: Commit to remaining financially independent even after you get married. This means maintaining separate accounts for spending, saving, and investing, making it a priority in your marriage, and contributing as much as possible to your retirement savings account.

According to VNE