Money mistakes parents passed on to kids

A 2015 survey by the National Foundation for Credit Counseling explains that 34% of Americans give themselves C, D, or F when asked about their knowledge on personal finance. At the same time, 41% says that they learned about money from their parents. In a slideshow, Forbes.com enumerates some of the top money mistakes parents pass on to kids. Here’s the list.

Money silence. Whenever parents want to shun their kids from doing wrong things, they often call out on their kids explicitly. But when it comes to money matters, parents stay away from the topic and even consider money talk as rude.

Credit card magic. Parents use credit cards in front of their kids without explaining how everything works. Subliminally, kids think that gratification can simply be achieved with a swipe or two (or even more).

Not saying no. When kids throw a tantrum, parents often find themselves giving in just to get some peace and quiet. If your child wants something that’s out of the budget, explain to them the situation and teach the difference between wants and needs.

Lying. When parents say that “this will be our little secret” or “don’t tell mom/dad about this,” kids think that it’s perfectly fine to be dishonest to their partners.

Action betraying words. Parents should always practice what they preach. If you have a budget, stick to it. Doing otherwise sends the message that budgets are unimportant and can be shrugged off anytime.

Overspending on entertainment. Be wary of how much you spend for family time. Shelling too much cash suggests to kids that happiness can only be achieved when you have the money to burn.

Four more money saving mistakes

For the sake of being frugal, oftentimes, we end up spending more. There are those who drive around town just to search for the cheapest gas. We know that’s not practical, especially if you’re saving a nickel at most. Below are some of the common financial wrong moves people tend to commit.

Falling for ‘free’

Consumers always think that since something is ‘free,’ then there is no downside to it. A ‘free shipping with a $150 purchase’ promo, for example, would make you spend more than what you intend just to avail of the free shipping.

Overdosing at the dollar store

Dollar stores are gaining popularity since people are looking for bargains. But according to Consumer Reports, some products are actually dangerous, such as lamps and extension cords with fake UL labels certifying their safety, or some over-the-counter Aspirin shelved even beyond their expiration dates.

Buying in bulk

For some, buying in bulk is a good idea, since it can really save them money. But why would you buy items in bulk if you know that you can’t consume it all? Such a waste of money.

Making repairs yourself

There are broken things best left in the hands of professionals to be fixed, especially if making your own repairs would take up precious time but would still end up being a wreak. In this case, choosing an expert to do it is a cheaper alternative.