Those with children are probably well aware of the added costs of having a family. However, there are currently a number of economic and social factors that drive some of these parents deep into debt to try and please their kids.
A number of experts say they can’t blame these parents, since all they want is what’s best for their kids (as determined by advertisers). To keep from breaking the bank and regularly utilizing a payday advance loan to cover your monthly expenses as a result, Bankrate.com has some advice on a few financial missteps you can make with your kids.
Buy Name Brands Rather Than Generic Items
According to the website, “the nag factor” can have a major influence on the spending habits of parents. The nag factor is known to advertisers as the degree to which parents’ decisions are influenced by the opinions of their children. While you may think you are pleasing your child by giving into their demands at the grocery store, it’s important to remember that name brands cost an average 30 percent more than their generic counterparts. This may not seems like a big difference for a single product, but fill a whole shopping cart and you could be spending way more money than you need to.
Keeping Up With Trends
Peer pressure is a regular part of childhood, and if your child can resist this influence, than you’ve succeeded as a parent already. Meanwhile, for the rest of America, changing trends seen at school and on the playground could have you shelling out big bucks on the latest electronics, clothing and even automobiles. While satisfying your child’s social needs may seem noble, you need to step back and consider the impact these purchases have on your household’s overall financial standing.
Avoid Impulse Purchases
Marketing executives have an interesting way of influencing the impulse purchases of children. For example, products that often appeal to kids, such as candy, are placed at eye level near checkout lines and are relatively low priced. Once a child hones in on this item and implements the nag factor, most parents give in by telling themselves it’s just an extra dollar or two. However, if this is a regular occurrence that happens every time you go to the store, these minor purchases can add up over time.