5 Money Habits you don't want your Child to Learn

As a parent, you should teach financial discipline to your children, right from an early age of six or seven years. You can start with baby steps by teaching them to save their pocket money in a piggy bank. However, your approach to equip your children with financial skills should go beyond the 'piggy bank' method.You may have had your struggles with financial management. But, it's necessary to equip your child with good money habits so that he or she avoids similar mistakes. Look out for these five money habits that your child shouldn't learn.

You enter a store with a shopping list, but you end up buying more than what is required. When you don't have a budget and don't think twice before spending, the child will assume that you can afford any purchase. Besides, if you give in to your child's tantrums to buy a snack or a toy every time, it will give him or her a sense of entitlement. The child will not learn to earn for every purchase.

Everyone deserves a good life with all the possible comforts. In some cases, you may have the pressure to match up to your friend's higher standard of living. So, you buy designer clothing and home décor only to impress others. You grab every sale opportunity to buy things that you may not need, but only because they are available at low prices.However, this way, your child will not learn the difference between needs and desires. He or she will only learn to splurge and live the best life today without saving for the future.

You’ve purchased a new TV on EMI, and you have outstanding credit card bills due to your posh lifestyle. Your child will never learn the importance of actual money since credit cards and bank loans are there to fulfill all your desires. He or she will only learn to waste money on impulsive purchases.

You do not have a savings or investment plan for your long-term financial goals such as your child's education and wedding, an international vacation, or your retirement. Seeing this, your child will never learn the habit of planning and saving money for the future.

You never discuss household expenditures, bills, education fees, and EMI payments in front of your child. You assume your child to be too young for money talks. Since you keep your financial information a secret, your child will never learn how to manage daily expenses, maintain a budget, and indulge in savings for meeting long-term goals. The final word Your child needs to learn the importance of money, how to earn, and how to create a corpus for future goals and unforeseen events. You need to secure your child's future by modeling good money management habits in him/her.

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.