Parents are not perfect (as evidenced on occasion by our children’s behavior) and we do make mistakes. However, while we cannot expect perfection, we can work really hard to be as good at everything as we possibly can. We will all still make mistakes, but we can avoid some of the most common mistakes that parents make by educating ourselves and our peers. Some of the worst mistakes parents make have to do with finances. If you’re a parent or going to become a parent soon, you have to stop yourself from making some of the most detrimental financial mistakes possible for a family. You might not even realize what they are until it’s too late, which is why we’re here to tell you how you can avoid making financial mistakes so many other parents make. It will make your future, and your children’s future, much more liberating and relaxing.
Not Buying Life Insurance
You need it. If you have kids, you need it. Even if you’re a stay-at-home parent, you are providing free childcare (essentially) to your kids, and if something happens to you, your spouse might need that money to help pay for the cost of childcare. All parents need life insurance.
Not Applying for Maternity Insurance
If you think that you can have a baby with cash, you’re going to be shocked. You can do it. Many people do. However, if you have complications, your baby has complications, you find out you’re pregnant with multiples or you end up needing to stay in the hospital for a long period of time, you might be shocked just how expensive your bill will be.
Not Considering the Cost of a Baby
If you have a baby thinking that you’ll figure it out later, you’re in for a rude awakening. It costs a lot of money to have a baby, and you better darn well be financially prepared to have one of your own before you get pregnant. If you can’t afford a baby, don’t have one. It’s not fair to the baby.
Not Teaching Kids About Money
The best thing you can do for your kids is teach them how to responsibly handle, view and think of money. Make them earn their money. Teach them about responsible spending and budgeting. Teach them to balance a checkbook and handle a household budget. Teach them about credit cards and savings and retirement; teach them.
Setting a Bad Example
The most important thing you will ever do for your kids is set a good example of how to view finances. When you set a bad example for them, you teach them bad money habits that will affect them for the rest of their lives.
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