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5 Tips For Teaching Money Management To Children

5 Tips For Teaching Money Management To Children

My parents taught me a lot of things about life, but the one thing that never seemed to be a priority was how to properly manage money.This lack of financial discipline carried over to my adulthood, which is when I had a real difficult time managing my funds in the beginning. However, I wasn’t going to make this same mistake and decided to teach my children some money management skills early on. I took a varied approach, including helping them opening their own savings account, which makes them comfortable dealing with banks, paying them for doing jobs so they learn the value of earning money, and encouraging wise spending anytime they wanted to by something. These, as well as gradually introducing them to the adult world of finance and spending can make them money masters by the time they hit their teens. Here are the top tips I learnt during my years of parenting, to effectively teach your children solid money management skills.

  1. Open a Savings Account

A lot of parents open a savings account  shortly after their child is born, but the child really isn’t an active part of that account. It’s best to open an account where the child can play an active role once they are able to understand the concept of money. Children often receive money for special occasions like birthdays or holidays and its fun for them to feel “grown up” for the child when they take that money to the bank to deposit it. These are life-long saving skills that carry through into adulthood.

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  1. Do Not Pay for Chores–Pay for Actual Work

A lot of parents use an allowance system for kids, paying them for keeping their room clean or for chores like doing dishes. I never did that, because some things are just life skills and a part of everyday life nobody is going to pay you later on in life. Instead, I broke down job descriptions into two categories: household responsibilities and paid jobs.Some chores such as cleaning a room or taking out the garbage is considered to be part of everyday living meaning that they won’t be paid to do them when they are adults. But other chores such as yard work, gardening or heavy duty cleaning are jobs that you may normally pay someone else to do. So, in this case, I would pay the children for this type of work. This strategy teaches children the value of earning money and hard work.

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  1. Learning Financial Penalties

Real life is full of financial penalties such as traffic citations, overdraft fees and other fines. Kids need to learn this early on. Children are mischievous and when they intentionally do something that costs money, don’t cover for them. Instead, punish them  withdrawing money from their own savings account and clearly explain why their own misbehavior led to the withdrawal. This will teach them take responsibility for their own actions.

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  1. Encourage Wise Spending

A parent loves their children which means our instinct triggers us to buy them the things they want. But this doesn’t teach anything about money management. It’s fun for a child when they want a special toy or piece of clothing, to purchase it with their own money.  They’re going to learn valuable life skills and patience if you allow them to save and pay for some purchases all on their own.

  1. Investments

A lot of people know little to nothing about just how investments work, but it’s a skill that should be developed early on and will pay off in the long run. If you do investments yourself, take the children with you to the broker and allow them to observe the process. Teaching your children the very basics of how investments work will only help them later on. Combining this with the basic skills of managing a bank account, taking up a job and have a savings strategy will allow them to become experts on managing their own money.

Featured photo credit: Sean Donnerty via flickr.com

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Published on July 23, 2020

11 Signs You’re an Overprotective Parent (And What to Do About It)

11 Signs You’re an Overprotective Parent (And What to Do About It)

Have you ever followed your child around the playground? They may have been a toddler and you were worried they would take the wrong step and fall off the jungle gym. Therefore, you followed your toddler around, keeping them within arm’s reach so that you could prevent them from falling or having an accident.

I have been that parent at the playground in the past. With twin boys who had no fear as toddlers, I would follow them onto playground equipment because I was concerned for their safety.

After a few months of doing this, I stopped. I came to realize that children need to learn through their own experiences. They will fall, but they will also learn how to avoid danger and make calculated judgments about risks through their experiences. If I was always there to stop them from falling, they wouldn’t learn to stop themselves.

They had to learn things on their own. Of course, as a parent, it is still my responsibility to not place them in situations where they could be terribly injured.

For example, we started at playgrounds that were intended for children under the age of five. We didn’t move up to the big playgrounds until they were old enough and aware of their behaviors and the risks involved in playground play activities.

Why Parents Become Overprotective

The intention of overprotective parenting is well-meaning. These types of parents are highly concerned about their children’s safety and decision making. Their ultimate goal is to protect their child from harm. Parents should be concerned about the safety and well-being of their children.

However, on the flip side, parents should also be teaching their children about risk and responsibility. Those lessons are best taught through life experience. If we are always following behind our children, ready to catch them at a moment’s notice, then we aren’t allowing them to learn about risk and responsibility.

Unger, a researcher on overprotective parenting, suggests that parents should allow children to participate in activities on their own that are considered low-risk.[1] This means allowing children to engage in activities on their own that provide “manageable amounts of risk and responsibility.”

Unger cited that parents have become increasingly more protective of their children and are much more watchful of their children’s activities than previous generations.

The problem with being an overprotective parent is that the child misses out on the opportunity to build responsible behavior skills, build autonomy, and develop self-esteem. Their confidence can be undermined when mom or dad are always watching and guiding their behavior.

They can develop a sense that they are unable to make their own good decisions because they are never allowed to do so in life. Their confidence and self-esteem are hindered when they aren’t allowed to do things on their own without their parents hovering or watching over them.

What Are the Signs of an Overprotective Parent?

Parents with overly protective tendencies think that they are helping their child. Their goal is to protect their child, but it goes to the extreme. Below are some ways that a parent can be overly protective.

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This type of behavior can end up harming their child’s development when one or more of these behaviors is present. There are likely other ways that a parent can be overprotective of their child, as this list is not comprehensive.

These are examples so you can assess your behavior to determine if you need to loosen up overly protective parenting habits.

  1. You choose your child’s friends or direct them toward friendships with particular children.
  2. You don’t allow them to do activities on their own. For example, not allowing them to walk the dog in front of your home even though you live in a safe neighborhood and could even watch them from the front window.
  3. You are constantly monitoring your child. For example, you show up at their sports practices often to check in and see how they are doing or you go online to check their grades every week to ensure that they don’t have any missing work in any classes. If they do have missing work, you make sure that they get it completed and turned in before their final grade can be affected.
  4. You prevent them from making mistakes when you can see that they are going to make a low-risk mistake. For example, not allowing your five-year-old to put ketchup on their pancakes because you know they are going to dislike it and ruin their breakfast. You won’t allow them to chose to make such a mistake because you know that they will cry and get upset and you want to prevent them from becoming emotionally upset.
  5. You don’t allow them to go to friend’s homes without you.
  6. Sleepovers at other homes or camps are never allowed during their childhood.
  7. You drill them with questions about their life when they are out of your sight, such as wanting to know about all the details of their school day every day when you pick them up from school.
  8. You guide them to the extent that they are prevented from failing. For example, not allowing your teen to try out for the basketball team because you know that they will not make the cut.
  9. You make their decisions for them. For example, you don’t allow them to choose whether they can walk to school or ride the bus. You drive them and do not allow for any decision outside of this because you want to keep them safe.
  10. You are always volunteering to serve in their school classroom or chaperone the school trips because you want to “keep an eye on what is going on in your child’s class”.
  11. You do not allow them to have secrets or privacy. For example, they are not allowed to have a locked diary that you do not read or you don’t allow them to lock their bedroom door ever.

Why Being Overprotective Is Not a Good Idea

Kids learn from natural consequences. If they are not allowed to have natural consequences because their parent is continually protecting them from failure and harm, their development is being hindered.

For example, let’s look at a child named Sally who is 13. She is a child who is overly managed by her parents and is not allowed to go to sleepovers or even go to another friend’s home. Her parents are worried about stranger danger and what can happen if they are not with their child.

Sally is allowed to have friends at her home, but her parents are always watching the kids. Whenever Sally and her friends begin to disagree, the argument is squelched before the children can even begin to work things out between themselves because Sally’s parents will intervene and solve the problem.

Sally is never alone with friends outside of school because her parents are always present. The presence of her parents in her socialization is hindering her development.

She doesn’t know how to work out disagreements between her peers because she has never been allowed the opportunity to even try. Her social skills are lacking because parents intervene to direct her behavior while she is with her friends.

Kids Need Space and Time

Kids need space and time to be independent while they are children. If Sally were to be left alone with her friends, her friends would eventually push back at her bossy behavior when her parents are not present.

However, because Sally’s parents are always present she gets away with being overly-bossy to her friends. She is not learning about the natural consequences of her bossiness but someday will when it may be difficult to change her behaviors as she is older in more set in her ways.

It is easier to learn through natural consequences at a young age. Sally will likely end up going to therapy as an adult because she can’t keep friendships intact. Her bossy behaviors and lack of awareness have led to her having severed friendships repeatedly as a young adult.

She will have to work with a therapist to uncover the reason why she is losing friends and then work to change her behavior to learn better ways to act towards her friends in the future.

Effects of Overprotection

There are a variety of effects of overprotective parenting. It is often dependent on the methods the parent utilizes and the extent of the overprotective behavior.

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For example, let’s look at Tina who is a girl age 10. She wants to run and participate in her school’s after-school competitive track program. However, she is not allowed to participate in after school activities because her parents are worried that she will be exposed to boys and may start having relationships with the opposite sex too young.

Another concern is that a boy may “take advantage” of their daughter, so they want to protect her from being exposed to boys outside of school and their supervision.

The problem with this is that Tina is missing out on participating in a sports activity that could help her develop friendships. She is also missing out on the opportunities associated with being a part of a team, working hard physically to compete, and developing sportsmanship skills.

Her parents are well-meaning, but their over-protection is preventing her from participating in a sports activity that she deeply desires to engage in.

There are other effects of overprotective parenting. Below are some examples.

Examples of Overprotective Parenting

This list is not comprehensive, as every parenting situation and family is unique. However, this list can help provide some insight into the detrimental effects that overprotective parenting can cause.

1. Lack of Self-Esteem Development

If children are not allowed to try things on their own, they cannot build self-confidence and self-esteem.

2. Lack of Autonomy

If a child is always accustomed to having a parent around and supervising their behavior, they can become dependent on the decision making of their parents because they are never allowed to be alone or do things alone.

3. Anxiety

A child who is never allowed to try to do things on their own can become anxious when they are finally allowed to try things out on their own. They worry about making mistakes or failing because they have continually had a parent to help them avoid mistakes and failure.

4. Lack of Responsibility

When parents are always helping and guiding their children to an extreme, children will fail to develop their own responsibility skills. If they are never held responsible for anything, how can they develop a sense of responsibility?

5. People-Pleasing Tendencies

Youniverse explained that children who have overprotective parents who constantly direct their children’s behavior end up seeking the approval of those in their life.[2] These children will grow up accustomed to someone always telling them what the “right behavior” looks like.

If they don’t have that praise or comfort of someone saying they did things right, they can become anxious or depressed. They become people-pleasers who seek the appraisal of others.

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6. Risky Behavior

When children are raised in an overly protective home, they often engage in risky behavior when the reigns are lifted. They haven’t experienced the failures associated with low-risk situations at a younger age because of their overly protective parents.

Therefore, when they get older, access to high-risk situations becomes more easily accessible, and without understanding high risk versus low-risk situations, they engage without the wisdom of previous experiences.

Because of their inexperience with risks in general, they may engage in high risk because they are unaware of consequences.

7. Diminished Development Regarding Fear, Social Skills, and Coping Skills

Psychology Today explains that children with overprotective parents have developmental issues, such as not being able to deal with stress and poor social skills.[3]

For example, a child who isn’t allowed to play on a playground because the parent wants to protect their child from injury is prevented from learning about risk-taking on the playground and the bumps and bruises from consequences.

Such a child may grow up to either having too much fear because it was instilled by their parents or have no fear because they have no concept of high-risk versus low-risk behavior.

8. Lack of Immunity

The Psychology Today article also explained that children who have overly protective parents that do not allow exposure to germs can become children who have a compromised immune system. Exposure to germs as children is needed for them to develop a healthy immune system naturally.

When parents are disinfecting everything the child encounters and not allowing exposure to germs (e.g., not allowing them to go to a petting zoo or to play in the sandbox because of the germs in those places), they can be stunting their child’s ability to develop their immune system.

9. Control Freaks

Children who have been parented by control freaks learn this behavior from their parents. Parents are the primary role model of behavior for their children. If children see their parents acting as though they must have control over others and every situation at all times, then they too will learn to behave in this same manner.

What to Do If You Are an Overprotective Parent

If after reading this content you feel that you may be an overprotective parent, there is hope. You can change.

It begins with loosening the reigns of control over your child in a calculated and reasonable manner. Allowing for low-risk behaviors and the consequences involved can help your child become more independent.

There is definitely a balance to protective versus overprotective parenting. Allowing for activities and exposure to experiences that are low-risk is a good way to start.

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For example, allowing your child to play on age-appropriate playground equipment (without following them) is a good first step. They will experience some bumps and bruises, but this is a part of normal development and learning about consequences.

You will want to research authoritative parenting methods if you feel you are an overprotective parent. Overprotective parents tend to be authoritarian parents.

Here is a LifeHack article I previously wrote about authoritarian parenting, so you can understand the drawbacks to this parenting method: Authoritarian Parenting.

Authoritative parenting is not control-based parenting. It involves teaching consequences naturally, allowing age-appropriate decision-making, and having conversations with children rather than dictating for ultimate control and compliance.

MSU Extension provides some great guidelines for authoritative parenting.[4] Below are some of the behaviors they described with authoritative parenting methods:

  • Provide reasonable, age-appropriate expectations for children.
  • Stress and anxiety for children can have positive outcomes, as they are allowed to experience these feelings in small doses as children. They can then build their coping skills and ability to deal with stress and anxiety through experience.
  • Encourage independence, as it helps children build their confidence and self-esteem.
  • Allowing for failures when they are young helps them learn how to pick themselves back up and try again. Developing this ability at a young age regularly will help prepare them for bigger failures when they are older, such as breakups, failed classes, or losing a job.

Final Thoughts

It is never too late to work on our parenting skills. There is no such thing as a perfect parent, therefore, we can always be working on improving our parenting methods.

We all want our children to be successful, happy, and competent as adults. It does not happen overnight. Parenting is a continual process of trying daily to help our children live and learn through their own life experiences.

If we try to protect them every step of the way, then they are not being allowed to truly experience life.

Allow for age-appropriate experiences and allow for failures so that they can learn how to pick themselves back up and try again.

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Featured photo credit: Sue Zeng via unsplash.com

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