When kids make money, what task does experience play?

What part does experience play when children make money? Frequently as parents we tend to have a soft spot in our hearts for our children and we cover for plenty of mistakes they make. Is this the best technique when it comes to learning about money? I say possibly not but the question is why?

First it is vital that youngsters experience the joy and discomfort that comes from dealing with cash. What percentage of us have experienced the thrill of the Friday payday only to blow it all over Saturday and Sunday and be broke on Monday? This isn't a good feeling but maybe it taught you a great lesson. Frequently the best lessons in life come not from our successes but from our disasters. By doing this you can set a bad precedent that whenever I get into trouble, mommy and daddy will bail me out. Sure they may kick and scream and not like you for a while however, the lesson they learn will be one they never forget.
it's also good to allow your youngsters to earn money choices now while their decisions only affect their lives. It is great to inform your kids what to do with their money but don't do it all for them. Let them make some selections although you know some will be good and some will be bad. Some will make them money and some may cost them money but that is ok because they're learning. By the point they're adults hopefully they will know the difference between the two.
As crazy as it sounds when kids make money calls failure is good and mistakes are an excellent thing. Obviously no parent wants to see their child make bad calls but sometimes that will be the only way your youngster will learn so permit your children to make them. Remember your kids don't have to be perfect but they should grow and mistakes made in the coaching ground of the home can help lead them to expansion.
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