Kids have a lot more time at home during the summer, and parents can end up busting their budgets without even realizing it. Saying yes to everything a child asks for no matter how small can bust a parent's budget and set up some bad financial habits. Bankrate.com says sneaky ways parents overspend on their kids start in the grocery store and the mall, most notably the pricier name brands, and impulse purchases that really add up.
Bankrate's Claes Bell says, "Kids don't have the same kind of filter for advertising that we do. They get really into certain brands and kind of get almost obsessed with them when they're at the store. So I think the role of parents here is to teach a little bit of healthy skepticism."
Next time you say, "not this time," put the money saved aside, so kids and teens can see how passing up one small item leads to a bigger treat in the future. Teaching about saving is a skill that can last a lifetime. And overspending doesn't just apply to little ones. One of the biggest parental pitfalls is wedding costs. Adult children are more likely to comprehend the word, "no," even if they don't like it. Discuss other money needs with the bride and groom, like retirement savings or paying down debt. Chances are they won't want one big day to cause years of financial peril, for aging parents.