8 Money Mistakes Parents Make That Could Leave Their Kids Broke Forever

1. Not Teaching Their Kids About Money

Parents who do not teach their children about money are setting their children up for a lifetime of financial difficulties. 

2. Overstuffing their children with material possessions

It's natural for parents to want to give their children everything they desire, but indulging them with too many material belongings can harm their financial future.

3. Setting a Poor Example with Their Spending Habits

It can be difficult for children to acquire appropriate money lessons if their parents have poor spending habits or live over their means.

4. Not Saving for Their Children's College Education

When parents fail to save for their children's college education, both parents and kids may face financial hardship.

5. Not Having an Emergency Fund in Place

Unexpected circumstances such as job loss, illness, or a big home repair can put a significant burden on your finances if you don't have an emergency fund.

6. Ignoring the importance of budgeting and living within one’s means

Parents who disregard these guidelines may find themselves in debt or unable to accomplish their financial goals.

7. Failing to Teach Their Kids About Credit Scores

Parents who neglect to teach their children about credit scores and ethical credit use risk putting them in financial trouble in the future.

8. Co-signing Loans for Their Kids Without Fully Understanding the Risks Involved

Co-signing a debt can be dangerous, especially if the parent is unaware of the potential ramifications.