Parents will often worry about their children and their financial situation. They will be concerned that they are perhaps getting themselves into unnecessary debt or that they are not managing financially. It can be difficult at times as a parent. But even if you think that your children are making mistakes it can be better to let them carry on for a few reasons.
Children Do Not Always Take Parents Advice
As children grow up they like to feel independent of their parents. They want to feel grown up and not always rely on the help if their parents. This means that they might not want help. They may not appreciate being told what to do. They may also even want to go against what parents suggest as they feel like they are being babied and they should do their own thing. If they are strong willed they might even purposely go against parents advice even if they know parents are right, so that they can feel like they are doing their own thing.
They Can Learn from Their Decisions
Sometimes it can be better to learn from your own mistakes than have someone teach you. It can be more memorable if you make a mistake as you will have been through the situation yourself. Obviously, no parents want their children to suffer but if they make a small mistake then they will hopefully learn from that and it will avoid them making larger ones in the future.
They Might Know More than Parents
It is also worth parents noting that the children might actually know more than them. Although parents tend to be wiser because they have had more experience, they may not be up to date on their knowledge. This means that there is a possibility that their children actually know more about what they are doing with money than the parents do.
Parents Will Not Always Be There to Help
It is also worth remembering that as parents you will not always be there to help them. This means that you need to let them have a go on their own and learn form some experiences so that they will have more knowledge and confidence. If they do need help desperately, they will hopefully still come to you and you can help them then.
Parents May Not Know the Full Story
It is also worth noting that parents may not know the full story with regards to their children’s borrowing. It might be that are in a temporary cash flow problem and if they take out a quick loan it will help them out and when they get paid they will easily pay it off and be able to move forward. It is important to think about the consequences of them not having the loan as well as the consequences of them having it. Make sure that you understand their situation fully.
So, it should not really be a decision that you can make without fully understanding the situation. It can be good to talk to your children about their situation and why they are taking out the loan and get an understanding of their situation. This will allow you to be able to decide whether you think that it is a good idea. It can be scary, thinking about your child borrowing, but if you have borrowed yourself then it is not that different. It is also worth remembering that there is good and bad borrowing and if they are borrowing for a good reason, have compared all loans and chosen the best one for them and know that they will be able to repay, then this will be a good loan and worthwhile.
It can be a good idea to make sure that you think about their situation and whether it is good for them. Just because something may not seem right for you, it could work well for you. It is easy to think that you are right and think about what you would do, without considering them and why they are taking this decision.
It can also be good to try to be understanding rather than judgemental. Think about how they will be able to learn from this if it does turn out to be a mistake. In any case it will teach them responsibility and hopefully something about money management. This will be a really useful thing for them to learn. If it does goes wrong rather than thinking ‘I told you so’ try to feel sympathy and discuss it with them to try to help them learn. If you get too domineering or annoyed with them it will make it far less likely that they will listen to your advice. But if you listen carefully to their problems, and be gentle and understanding and then give them a few bits of advice they are more likely to listen and take it and then learn from the experience.