Oops, We Did It Again: 5 Money Mistakes Parents Make (And How to Dodge Them)
Parenting is hard enough without money stress in the mix. But even the most well-meaning mums and dads can trip over a few financial hurdles.
This article explores five of the most common money mistakes parents make, without any judgement, and gives you practical, feel-good ways to sidestep them. Because you're not just raising kids. You’re raising future adults.
1. Putting Kids First... Financially
Let’s get one thing straight: wanting the best for your kids is beautiful. But sometimes, parents stretch their budgets too thin trying to give their children everything—from the latest kicks to a mountain of extracurriculars.
🧠 The Fix: Think “oxygen mask on you first.” Taking care of your own financial stability (hello, emergency fund and retirement savings) helps ensure you’ll always be there for them, not just financially—but emotionally too.
2. Avoiding Money Chats with the Kids
Money often gets treated like Voldemort—"He-Who-Must-Not-Be-Named." But keeping kids in the dark doesn’t protect them—it just delays their learning.
🧠 The Fix: Start small. Explain the difference between needs vs wants. Let them watch you budget for groceries. Use pocket money as a learning tool. It’s less about knowing numbers and more about learning habits.
3. Not Planning for the Unexpected
It’s easy to think “She’ll be right”—until the car breaks down, the fridge dies, or someone’s sick. Many parents skip building a rainy-day fund, leaving them scrambling when life throws a curveball.
🧠 The Fix: Start an emergency fund—even if it’s just $5 a week. Over time, those small contributions become your financial buffer. Think of it as the money equivalent of baby-proofing your home.
4. Taking on Too Much Debt for Their Kids
Whether it’s private school fees or co-signing for a car loan, some parents dive deep into debt to help their kids get ahead. While generous, it can put serious pressure on your own future.
🧠 The Fix: Ask yourself, “Can I genuinely afford this?” and “Is there another way?” Teaching your kids how to earn, save, and borrow responsibly can sometimes be the greater gift.
5. Neglecting Their Own Retirement
It’s common to think, “I’ll sort my retirement later—right now is about the kids.” But retirement isn’t just about you—it’s also about not becoming a future financial burden on your children.
🧠 The Fix: Contribute something—anything—to your KiwiSaver (or retirement account). Even small, regular contributions grow massively thanks to compound interest. Your future self (and your future adult kids) will thank you.
Final Thought
There’s no such thing as a “perfect” parent. You’re doing your best—and that’s incredible. But with a few tiny tweaks, you can raise your kids and raise your financial game. And remember: teaching kids about money doesn’t start with lectures—it starts with example.
