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Is your financial behaviour hurting your children?

​​Parent trap: Righting a wrong
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​​Parent trap: Righting a wrong

A bad financial situation explained in the wrong manner can induce anxiety among kids. Know how to say the right thing at the right time.

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Refusal to buy things due to shortage of or limited income
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Refusal to buy things due to shortage of or limited income

Wrong way: "Do you know how hard I have to work to run the house and support you? I can’t fulfill all your demands all the time!"
Right way: "I earn a fixed amount. Of this, I first need to take care of essentials like food, clothes, bills and loan repayment. Only the money left after these expenses can be spent on luxuries and entertainment."

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​Dealing with creditors
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​Dealing with creditors

Wrong way: “Please tell uncle that dad will not be able to pay you since he is out of town and will be back only after a month.”
Right way: Do not force your child to lie on your behalf. Make a plan to repay your debts, then explain the kid why you can’t make the payment immediately and how you plan to do so in the future.

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​Spouse’s poor financial habits
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​Spouse’s poor financial habits

Wrong way: “Your mother spends all the money on her dresses and jewellery! How will we ever save for your foreign education?”
Right way: Sit as a family and calculate the amount required for education. “We will all have to cut corners and bring down our discretionary expenses if you want to study abroad. We can even take a loan for it.”

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​Financial issues arising out of separation or divorce
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​Financial issues arising out of separation or divorce

Wrong way: “You can’t go for the school trip because your dad does not pay the maintenance regularly and I don’t have enough money!”
Right way: “I have a limited income and first need to take care of the essentials. If both of us try to save more, you can go for the trip next year.”

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​Loss of job
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​Loss of job

Wrong way: “We can’t go on a holiday because I’m saying so! Just accept it!” Hiding the fact from the kid, pretending all is well, and making excuses for cutting down on holidays or eating out is not the solution.
Right way: “I want a higher paying job and am already looking for it. I should be able to find it soon. Till this happens, we will have to cut down on our discretionary expenses like eating out or fun trips.”

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