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Are You Spending Too Much on Your Kids??

Submitted by admin on Tue, 08/28/2007 - 22:02.

Giving in and buying whatever your child wants can be bad for your finances and for your kids. Treating your kids to a little extra sends the wrong kind of message and can significantly reduce the size of your wallet.

CNNmoney(March 25) says there are signs that prove you're spending too much on your kids, including:

  • Equating household chores with money. Children should view chores as a part of home life, not as a means of getting money. The same goes for grades--getting tipped for performing well is counterproductive. It's OK to pay children for doing something extraordinary such as cleaning out the garage.

  • Giving your children more than their allotted allowance. Resist the urge to cover every expense once their allowance money runs out. Let your children live with the consequences of making a bad financial decision.

  • Buying your children the designer jeans they want. Even if you can afford to buy them, don't. Teach children to save their money for the things they want.

  • Resist giving in to their requests--big and small. If you give in, you could set your kids up for long-term discontent--there's nothing to look forward to. There's no respect for what they're getting and there's no incentive for them to save.

By saying no to your children's requests, you're teaching them to be self-sufficient. Separate the idea of money from your time and affection. By overindulging children you're giving them a false sense of entitlement, and it won't teach them how to be happy.