Ramit Sethi Tells Parents What They Should Never Say To Their Kids About Money: 'Your Kids Will Absorb It'
Children mirror their parents. The way parents act and speak will influence what their children become, and this truth branches out into all areas of your children's lives. With that in mind, financial guru Ramit Sethi revealed what parents should have said to their kids about money. Making this mistake can cause your children to endure financial hardships and have a more difficult time growing their careers.
"Your kids will absorb it," Sethi said.
Sethi shares what you shouldn't do and offers some suggestions of what you can do to make your kids confident with their finances.
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Sethi says that you should never use this phrase in front of your children. Saying it once is bad enough, but if you repeat it, your child may develop negative thoughts about money.
For instance, your child may view money as a scarce resource and feel like it's difficult to get ahead in their career. If your child has a successful career, they may avoid spending money in general, even when spending it would be a good thing.
Children will look at your actions and words as guidance, whether it's for the best or for the worst. Make sure you are very careful about how you speak about money and working hard to achieve goals.
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One of the concerns Sethi brings up is that kids who hear that their parents can't afford anything may be reluctant to spend money, even when they have more than enough. While saving money is a good habit, Sethi is against having millions of dollars in the bank and never tapping into it.
He believes that people should aim to live rich lifestyles. That doesn't mean you go out and buy luxury cars and designer bags that you can't afford. It simply means being smart with your money but giving yourself some flexibility to make discretionary purchases that make you happy.
For instance, he's against impulsive spending and buying things that don't make you happy. However, if you have wanted to go to Hawaii for more than a decade, he's the type of financial guru who would encourage you to make that trip once you have saved enough money.
He's an advocate for frugal spending, which means being tight with how you spend money but being flexible with spending money on things and experiences that meaningfully boost your long-term happiness. However, he's against being cheap, which is the equivalent of a millionaire fasting for the sole purpose of reducing their grocery bill.Knowing that your kids will absorb what you say gives you a great advantage. While some families talk about the things they can't afford, you can flip the script. Instead of saying that you can't afford something, you can teach your children valuable lessons about prioritizing how they spend money and building toward long-term financial goals.
Serving as this type of mentor for your child can help them become more successful than you when they get older. You can encourage them to build good financial habits and explain what you are doing to move closer to your long-term goals.
It's okay to talk about money with your children. Doing so can help them in the long run. However, parents talk with their children about money whether they know it or not. Your child will notice things like what quality of life you accept, how you feel about asking for a raise or leaving your current job for a better opportunity, and if you invest money.
Being more intentional about how your children think about money can inspire you to work toward long-term goals, boost your income with side hustles, and attain a higher standard of living.
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This article Ramit Sethi Tells Parents What They Should Never Say To Their Kids About Money: 'Your Kids Will Absorb It' originally appeared on Benzinga.com
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