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SALT LAKE CITY -- As parents, it's our job to teach our kids to be wise with their money. But some financial counselors say we may be going about it all wrong.
There are some concepts parents teach that can give children the wrong idea about money. American Credit Foundation President Scott Peterson says parents may be trying to protect their children from heartache or disappointment from making bad decisions with money.
"So they're doing it with good intentions," he said. "But the reality is that often times, as parents, we're teaching our children and perpetuating myths about money that just aren't true."
That darn (fill in the blank)
We all have our own political opinions about what is causing the nation's economic problems. Some people may think big government is taxing people too much, while others feel big corporations are rewarding the rich and squeezing money from the middle class.
Whatever your opinions are, Peterson says it's important for parents to share these opinions with their children without making kids feel like their success is not in their control.
"If they don't have money or whatever their circumstance is, you're now saying that somebody else is to blame," Peterson said.
He says it may be helpful for kids to talk about how some people have become successful, even in hard economic times.
For example, it's important to share your political views with your children about whether big government or big corporations are causing the country's economic problems. But Peterson says it's important your kids don't think they can't be successful because of them.
Money doesn't grow on trees
Kids may ask parents for a lot of things, and kids will get shot down many times. One common response from parents is, "We can't afford it."
While this may be true, Peterson says kids may interpret it the wrong way. Kids may understand this to mean that they should get used to a life of financial disappointment which, again, may make them think they're not capable of financial success.
Peterson says it may be better if parents explain why they're deciding not to spend their money on a high-ticket item aside from saying they can't afford it. Take, for example, an iPad.
"[Parents should say] an iPad is a nice thing, but it's not a necessity. It's a convenience and it's a convenience, really, that we don't even want to spend our money on," he explained. "We'd rather go to Lake Powell or we would rather do some other activity or event. We've chosen, as a family, to do something different."
Actions speak louder than words
Peterson says many parent may accidentally be teaching their kids to take short cuts by borrowing money when they can't afford it. Even if parents are teaching kids about credit and about budgeting, the lessons may not stick if parents don't live by what they teach.
"Our children may hear us say the right things, but they watch us do the wrong things by [showing] the self-gratification of having to have things immediately," he said.
E-mail: pnelson@ksl.com
