20 Second Advisor: Let Your Kids Fail Financially

We must allow our kids to fail so they can learn. By failing, they gain wisdom. They learn resilience. They learn how to solve problems on their own.

This applies to money as well, but it’s not easy for me to watch. On each family trip, we give our kids a certain amount of money to spend. They can spend it any way they want. We are happy to help guide them if they want but that’s not required.

One of our kids always asks for help making a detailed budget. She wants to make sure every dollar is spent wisely. She has learned over time.

Sometimes they blow all the money buying candy on day 1 and don’t want our input. I have to hold my tongue and let them learn. I also have to stay strong at the end of the trip when they are out of money. Hopefully, these small “failures” will teach them to manage their money wisely down the road.

Do you let your kids fail financially?

Is it hard to let go and allow them the freedom to make wrong decisions?