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10 mistakes that parents make with their children when it comes to money

By hollisterclothingoutlet 09/06/2022 389 Views

No one teaches to be a father or mother.Among the many things that are learned along the way is everything that has to do with the family economy and children.

For the vast majority it is an learning by the essay and error and as when investing or managing your finances, avoiding errors is more important than adding successes.These are parents' errors with money and children.

Not knowing how much it costs to be a father

Today's children are not born with a bread under their arm, but with an invoice.Being a father is not cheap, although it does not necessarily have to be expensive.The problem is that most parents undervalue the financial impact of long -term paternity.

It is usual to focus on the most immediate expenses such as the ride, the cradle, diapers, bottles ... It is what our brain does when you go from not having a concrete expense to have it.It is also true that the initial investment of being a father is high.The first twelve months of a child are a cost of 7,132 euros according to CEACU and OCU calculations.

However, this is just the first year.The complete image goes much further.

Forget the greatest expense of a child: the university

Apart from basic maintenance in food, clothing or footwear, education is the largest of children with the university at the head.It is one of those expenses that are lost when you look at the tree and you don't see the forest.

We have so internalized that education is free in Spain that we do not notice that even the public university has costs.The average cost being university goes from 821 to 1372 euros for public universities according to the data of the Ministry of Education, to which the school supplies will have to be added.

The cost is triggered in the case of private universities or if the child has to study and reside in a different city.It will also be greater if any subject repeats, since the previous figure is for an estimate of 60 credits per course and with first call.

How to raise successful, autonomous and resilient children

Buy a larger house

10 errores que los padres cometen con sus hijos cuando se trata de dinero

This is a very repeated financial error with children.Many parents choose to sell their home and buy a bigger one for children to have more space.

The idea itself is not bad, but a larger house also involves more maintenance expenses and also in the mortgage.The immediate cost of the mortgage is easy to calculate, although not so much the global impact of increasing the quantity and years of the loan.

Something similar occurs with maintenance expenses, more difficult to estimate and that suppose a de facto increase in the standard of living.

Stop financial plans for the arrival of children

"First I want to see what expenses I have and then I will start saving."This is a usual phrase in first -time parents.The result is that in the end you never start saving, just as you think you will save when you charge more.

Stop saving to deal with children's expenses is the most financial error most repeated by parents.It is a movement that seems that it makes sense, when in reality it is the opposite.As you have seen, children never stop spending money.What happens is that the type of expenses is changing, but almost always up.

According to Luis Pita, author of the book 'Ten worse car than your neighbor' "The best thing you can do to ensure your children's financial future and yours is to continue saving every month if you already did and even increase the amount a bit.And if you didn't save anything, start as soon as possible. ”

Finance the child's social events

Baptism, communion, birthday, graduation ... All are relatively important events and not precisely cheap.As shown, the average price of a communion in Spain is 2,500 euros according to the data of the Federation of Independent Users and Consumers (FUCI).

A very common mistake as a father is not to have planned these expenses and choose to finance them.The risk of doing so is that you will pay more in the form of interest and possibly spend more than you thought because, after all, there is not so much difference between what you pay per month if you ask for 5,000 euros instead of 3,000 euros.

The solution to this financial ruling as parents is to devote time to think about those expenses that know that they will arrive sooner or later and budget them.

3 recommendations for making children save and invest since childhood in their future

Rehipotecar life for children

When children become independent and create their own families, they may need their parents' help and it is normal for them to help their children.The problem is that many will give everything, literally for doing so.

That's where mistakes can be made such as being a busage of a business or reacting the house to donate money to children.Doing doing is not bad in itself, but you have to always keep in mind the risks and think about the impact it can have on your retirement savings."From a financial point of view it is dangerous because retirement is usually close and the margin of maneuver to recover is limited," they raise from pre -delay.

Give too much importance to the inheritance of the children

It is a variant of the previous error.All parents want to ensure the future of children and leave them a good inheritance.The truth is that "if you do your work well as a father, your child will know how to make a good economic life be carved," Pita says.

That is why, instead of thinking so much to stop inheritance and not spend so that they have more, it is better to invest in their financial education.

Do not promote your financial education

This is precisely another of parents' failures with money and children.It is usual to think more in terms of giving than in terms of teaching.You have to act backwards, not give fish to children but teach them to fish.

In the financial sphere, this is to encourage their education by teaching them things such as differentiating desires for needs, the importance of savings or danger of debts.

The secret for children to learn to save, according to these 4 finance experts

Leave children's savings in a children's account

Children's accounts are a good tool for children to learn to save, but they are not the best savings product for them.There are better products for the savings of children and that allow better to take better advantage of what children have: time.

As Vicente Varó explains, Finect Content Director, the key is in "searchNo, you will have not given you anything. "

Keep living in the family home when the children have gone

This is a mistake that has a lot to do with the Spanish culture to buy a house and keep it against wind and tide.Are you needed a four -bedroom house when the children have already left?It is easy that no and, as you have seen, a larger house implies a higher expense of money and time.

The solution?You can sell your home and buy a smaller one or you can rent it to generate an income that complements your pension and go to live a house that does adapt to your needs.

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