why hello there my friend now I hate to break this to you but many of you are in a toxic relationship with money and if you're not careful you're going to pass on that toxicity to your children your actions are teaching them how to behave with money and they're going to carry that with them throughout their lives some of you live very cheaply which can make your child feel like there's never enough so when they start earning money they spend it quickly because it makes them feel safe some of you live beyond your which sets
them up to be entitled and dependent on you now a quick side note if you want to dive deeper into where your money issues come from and why you have a broke mindset well we've got great news for you today on the alux app we dive into how to break free from the broke mindset we'll break down what it means what the symptoms are where it comes from and how you can fix it and since you're watching this video we've got a gift for you scan the QR code on screen and you'll get 50% off
a yearly subscription to the app if you want to test it first go ahead because we've got a 7-Day free trial for you I'll be right in there too so I hope to see you there and all right back to normal programming okay you have the power to give your children a healthy relationship with money from childhood but first you need to realize the mistakes you're making so you can fix them and that's why we're here today our video yesterday about the 15 Investments that will make your children Rich had the practical hardit hting advice
this one's going to tap into the bad money habits behaviors and choices that you're passing on to your children here are 15 wealth killing mistakes parents make number one telling them it doesn't matter what you do as long as you're happy who remembers their parents pushing them to study for a degree they hated it's a tale as oldest time The Talented artist is forced to study medicine and they're perpetually misunderstood by their parents so the children who experienced this pressure vowed to be different and now we've got a generation of parents who are sending their
children out into the world with those rose-colored glasses on the reality is that passions and dream jobs well they don't typically pay that well how will your children afford rent utilities Food and Health Care on top of a student loan on a meager salary you don't have to push them to get a career that makes them miserable no but you could lay out the financial reality of these jobs and work toward a middle ground together it's your job to balance the lessons of personal fulfillment with the practicalities of earning enough money to live the life
they want encouraging them to follow their dreams without breaking down the financial reality of life is like sending them off sailing into the sunset without teaching them how to sail number two showing them them that debt is normal and making the minimum payments is okay the amount of debt a lot of people have is still a new part of our economic culture and since it's relatively new the consequences of high credit card and loan debt wasn't fully understood even now we think debt is good because it helps with your credit score and people believe that
if you make the minimum payments on time then you'll be fine but do you plan and draw a hard line on how much debt they need to go into to get a good loan or credit score have you worked out how soon you can pay it off to keep the interest low while maintaining that score putting your normal daily expenses on your credit card using it for fun things that you want to do and telling your kids that they'll be fine if they pay the minimum amount doesn't prepare them for any kind of financial emergency
when children grow up seeing debt as a standard part of financial life well they become desensitized to it and the risks they don't understand the responsibilties that come with borrowing they see it as free money because that's what you're showing them eventually they'll become comfortable being In Perpetual debt and that's not a financial life anyone should be living number three modeling poor work ethic all the stories speeches and lessons in the world aren't going to make a difference if you're not walking the walk you can't tell your children to save invest and work hard if
you're not doing that yourself you have to model it for them if your child is watching you change jobs every month if they're watching you take lots of sick days and hearing you complain about work then they're going to associate working with unhappiness they're never going to want to throw their energy into anything they'll think that jobs are there for a good time not a long time and the reality is you need both number four encouraging them to take out a student loan now as controversial as it is to say this allowing your 18-year-old child
to take out a loan for their education is a major mistake on your part if you couldn't put away $100 a month in a compound interest account for the last 18 years to be able to help them out then how can you expect them to understand the gravity and shackles of taking out such a massive loan while they're so young student loans especially in the US can keep your children poor for most of their adult lives you're the adult here you should be investing in Saving for their education you don't have to pay for everything
but it's important to give them some kind of breathing room so they don't begin their adult lives already under crippling debt number five not opening a bank account for them you know we see far too many people opening their first bank account after they turn 18 years old as a parent it's your responsibility to do your research and help them open an account as soon as possible most banks offer teen checkings accounts starting at 13 to 15 years old some places even offer accounts for children as young as 6 years old opening their bank account
when they're young will teach them the concept of interest and budgeting they'll get to watch their money grow it also gives them a sense of autonomy and responsibility so they become confident in managing their finances something that is so important for their relationship with money number six buying them a car oh another controversial take parents say they want to give their children the life they never had they want to be able to provide for them and one of the biggest Milestones is buying your child a car now some places aren't walkable at all so cars
kind of become a necessity not just a right of passage and other places have great public transportation and are very walkable so buying a car for your kid is just un usual but no matter where you live or what you decide to do you have to do it in a way that doesn't encourage Financial codependency a car is a big step into adulthood and your child deserves the feeling of accomplishment that comes with taking those steps on their own it may relieve a financial burden temporarily but it could come with a lifetime of expecting bailouts
or help give them the gift of motivating them to work for the Milestone that that's something healthy and positive that they can always carry with them number seven handing them money whenever they ask you making money is tied to work and managing money well is tied to good decisions you don't show them this when you just hand them cash if they want to go to the movies tonight with their friends they might ask you for 50 bucks and you hand them 30 in an effort to show restraint and discipline but it's so much better for
everyone when you give them a regular set amount based on the work they do around the home you could work the funds into your budget and they know that if they put in the work they'll get something in return if they spend it all in one go hey that's on them they need to learn to save for special occasions and handouts don't teach them this number eight allowing them to hear about your financial worries if your children see that you're constantly stressed and worried about money well then you'll hand them a scarcity mindset even if
you don't mean to they grow up feeling that money is always hard to come by which limits their thinking and ambition children can't contextualize Financial issues and the emotional burden will distract them from important things like their education or Social Development and most importantly they'll see Financial worries as a reflection of their own worth you don't realize this but they'll feel guilty for costing you money and that affects s their self-esteem now while you should teach them about financial issues those problems need to come with a solution that you model teach them that it's okay
to take Financial risks but they also need to plan out their own safety net number nine fighting about money with your partner in front of them children learn so much through their observations when they see you fight about money you're teaching them that money is a source of conflict instead of a tool that should be managed together discussions about money at home shouldn't be associated with anger resentment or fear because that will just lead them to growing up with negative feelings about their finances in fact studies show that children who witness their parents fight about
money are far less likely to talk about it or even pay attention to it because they associate money with negative emotions managing money isn't complicated or contentious but when you're always fighting about it your children start to think that it is because otherwise why else would it cause so much conflict and that leads us to the next Point number 10 avoiding conversations about money now in an effort to protect your children from your financial problems and situation you might think that not talking about money is the best course of action but you couldn't be more
wrong money is a fundamental part of daily life and by not discussing it your children grow grow up without the tools and understanding they need to manage their finances well so teach them about realistic expectations and what they can afford teach them about responsibility and the value of hard work frame your conversations in a way that is open and positive instead of saying we can't afford anything because we never have enough money you could say let's do something within our budget let's think of something unusual and creative to do this weekend your best teaching moments
come from regular activities like grocery shopping paying bills or planning a family holiday the planning can be just as exciting as the actual activity so get them involved with it number 11 tying all of their fun activities to money vacations visits to amusement parks going to the movies or eating out at restaurants are expensive activities that should be saved for special occasions when everything you do with your kids is tied to money you're teaching them they have to spend it in order to have fun relaxing moments or make Memories the happiness in value and activity
brings shouldn't be tied to the cost and you don't want them to be entitled kids who expect outings to be always Grand and overthe toop when you show them that they can have just as much fun visiting a local park going to free events at the library hosting home movie Nights making crafts or exploring nature well they'll take those activities with them throughout their whole lives they'll grow up to be adults who are better at saving because they can entertain themselves without spending a ton of money they'll know they're not missing out when they have
to make sacrifices because they can have a great day at the park playing frisbee or volleyball with their friends number 12 impulse buying when you buy something on a whim your children learn that spending like that is a normal and acceptable way to manage your money they also see that you get Happy by buying material things and that can make them think you have to spend money to buy happiness they need to learn it is not easy to afford anything at any time there are Financial consequences to it number 13 giving in to the clothing
and makeup epidemic how do we say this in a way that doesn't sound so dramatic well I don't know if we can there's a buying epidemic going on and parents are ending to their children's demands too easily your kids are heavily influenced by social media so they all want the same sneakers clothing even makeup pushed by these influencers they tie these things into their overall worth they feel like they need these things to fit in and when you buy these things for them you're confirming that belief we actually appreciate individual style and creativity far more
than following Trends think about the people that you admire they bring something different and interesting to the table don't they they don't wear or do things just to fit in they find the group that will stand out with them that's what you want to teach them that having the same things as everyone else doesn't make them more worthy or more valuable number 14 teaching them to be polite about money talking about money can be awkward because there's this idea that it shows that you don't have it you're desperate for it you're worried about it but
if that avoidance leads to a lack of confidence about money well your children are more likely to undervalue their work and accept under payment find it hard to say no to friends family or their partner who keeps asking for financial help and feel like they need to hide the truth about their financial situation it's through talking to people that they understand their financial situation and can see if they're behind in their financial life these conversations can help them to make changes and fixes to put themselves in a better financial position but they won't be able
to do that if you're always teaching them to be polite and soft about it and number 15 buying things just because it's cheap now you might walk into a store to buy a pair of shoes for your child and see the cheapest option and say that's cheap go for that one it's what we can afford and then a few weeks later you're back in the same place because all the shoes you bought have already broken show your child that buying something that's good quality will last longer and give you a better cost per use than
buying something cheap that will break quickly show them that it's better to save your money and put a little bit away each month to be able to afford the quality shoes rather than making an expensive purchase in one go or going for something that just simply won't last and since you stuck with us until the end we do have a bonus for you and today's bonus is not preparing properly before your child is born before you could teach your children about money well you need to refine your own financial literacy you need to learn the
lessons of making money investing and reducing your expenses you need to understand how much more your children learn from watching your behavior and bad habits than they do from the things you tell them you also need to put yourself in the best financial position possible so that you're not always worried or stressed about money and putting this stress onto them without even real izing it create a detailed Financial map of your child's future managing money is about your planning and action more than it's about what comes into your bank account every month if you're worried
or stressed about money when you have children or you're confused or shocked about how expensive it is well then you haven't planned properly get your PowerPoint presentation out your spreadsheet budget or your handdrawn map whatever you need and make sure you've planned out the next two decades it's understandable you don't want your kids to make the same mistakes that you did but if you keep making the mistakes yourself well you can't expect them to do much better your child's Financial Freedom hey luxer it starts with you every decision you make every habit you exhibit and
every word you say about money forms the blueprint of your child's Financial psyche it's not just about avoiding debt or saving for a rainy day it's about teaching your children the value of money the importance of financial planning and the skills to navigate their financial future confidently stay wise stay healthy and until next time Alexa remember the future isn't just something you inherit no no the future is something you create
