Here are 5 Financial Mistakes Made by Parents to Their Children

If the child is still too young to write, parents can print pictures of things the child wants. 

3. Do not teach children about financial basics

"It is important to sit together with the child to discuss the basics of finance and if the child is old enough, teach about the dangers of using a credit card," said Klontz.

Also teach about the difference between debit and credit cards. About the concept of credit cards, you can explain about borrowing money from banks, but there is interest that follows.  

The debit card is used for transactions using one's own money. When shopping with a debit card, the money is taken from your own account.

Henske revealed, children who do not understand how credit works can face financial disasters when they later have credit cards as adults. 

4. Do not involve the child in big decisions

According to Henske, if children are not part of the process when buying a car or planning a vacation, they miss many important lessons about finance.

That is, many opportunities are lost to teach children about the value of money, because they do not fully know how expensive an item is.

Children may think that buying a Maserati car is cool, but don't know how much it costs. 

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The danger, later on, they do not have the things that support to make the right decisions related to the university where they will continue their education or career as they want.

Planning a vacation might be more fun than talking about choosing a car and negotiating with a dealer.

"Talk about the price of a plane ticket or what the budget is for food," Henske said. 

5. Assuming the topic of money is taboo

Henske said, not talking about finance is the same as not providing sex education to children. He recommends that parents openly talk about finances with children.