Handling Financial Conflicts Between Parents And Kids

Parenting children of any age has its ups and downs, and part of the job is navigating a variety of conflicts as children grow and mature. One of the most common conflicts are those related to money.

Money does not have to be an ongoing stressor in parent-child relationships, though. Parents can get ahead of potential conflict by starting to discuss finances with their kids at a young age. The earlier and more often these conversations come up, the more knowledgeable and prepared children will be for their financial futures.

Read on to learn about the most common conflicts parents and children have about finances and tips on how to turn these conflicts into learning opportunities.

#5. Parent didn’t give child money to do something they wanted

Children often ask their parents for money to go out and do things. As the old saying goes, money doesn’t grow on trees, so parents must say “no” sometimes. These situations can be opportunities to teach kids about money and financial responsibility.

#4. Child’s  spending habits

Sometimes, the things children want to spend their money on—not to mention the cost of these items—are not aligned with parental expectations for smart spending. Parents can work to prevent arguments about their children’s spending habits by teaching money-saving strategies from a young age.

#3. Child’s allowance amount

Allowances are an important way for parents to teach their kids not only how to manage their money but also the value of working to earn that money. Three in 4 parents pay an allowance to their children and about 1 in 3 set this payment somewhere between $11 to $20 per week, according to Investopedia.

#2. Child used credit card without permission

Nearly half of parents in the LendingTree survey said their child used their credit or debit card at least once without permission. With the average amount spent coming in at $534, it’s no surprise this is one of the top financial conflicts between kids and parents.

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