Affordable versus Unaffordable Mistakes: An excerpt from MILLIONAIRE BABIES OR BANKRUPT BRATS
One parent brags, "We follow all our lessons about money to the penny with our two children. Kraig and Kerry know not to spend any of their money without our presence and prior approval."
Another retorts, "What a great day! Kim forgot her lunch money today and had to beg off her friends. That’s the second time this week! With all these mistakes and consequences, she’ll have a Ph.D. in life by the time she graduates!"
Which child will be better prepared for a financial life full of wise decisions? Our bet is on Kim.
The authors of Love and Logic understand the road to wisdom is paved with mistakes and their consequences. The list below establishes a pattern of unaffordable and affordable mistakes around money. Which pattern do you want to establish with your children?
- Not having enough money to buy a toy car, or
- Not having money to buy a real car
- Not receiving full pay for an incomplete job at home, or
- Not receiving a full paycheck for an incomplete job at work
- Defaulting on a family loan and having his/her bike repossessed, or
- Defaulting on a bank loan and having his/her car repossessed
- Saving money early and often, or
- Saving money late and sporadically
- Making financial restitution for unpaid bills to Mom and Dad, or
- Making financial restitution to a credit card company or collection agency
We can turn our children’s mistakes into powerful learning opportunities simply by letting them experience the consequences of their mistakes.
What are some of the affordable mistakes your kids need to make today to avoid serious financial difficulties in the future?
From the Love & Logic Institute