Here are 5 Financial Mistakes Made by Parents to Their Children

TRIBUNBATAM.id - For many parents, talking about finances with their children is a difficult thing to do.

Some parents choose to do other things rather than discuss about finances with children. Sometimes, parents' financial literacy is also not qualified, so that it has an impact on the financial behavior shown to children. 

Reporting from CNBC, Monday (2/12/2019), according to Brad Klontz, author of the book Mind Over Money and one of the founders of the Financial Psychology Institute, parents must identify their beliefs about finance and look back on events that occur in families that are related to money.

Klontz said, there are certain events that have a big impact on people's relationships with money. He gave an example is the financial crisis that made some people distrust financial institutions because of the failure of the banking system. 

According to Thomas Henske, a certified financial planner, many parents feel reluctant to talk about money with their children. Because, they do not want to answer "wild" questions that children may ask.

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Henske gave an example of the question is one of them, "Are we rich?" 

"That is the beginning of a good conversation. Answer with questions. Rich has a different meaning for everyone. What do you mean by rich?" said Henske.

Here are some financial mistakes parents make toward children, whether they realize it or not. 

1. Always say "yes"

"Parents sometimes sacrifice too much for their children," said Liz Gendreau, author of a blog on family finances.

Gendreau said, it is a mistake if parents give everything to their children, especially if they have to sacrifice pension funds. Parents must balance their own needs with the needs of children. 

As for Henske said, many people misinterpret between love and giving something. According to him, rather than giving a lot of things to children, spending time with children is more valuable. 

2. Buy immediately

Children must be taught from an early age the difference between wants and needs. 

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Henske said, parents must teach children strategies and discussions about how much they want something. One way is to compile a list of items you want.