Here’s the third of four key money phrases your children need know – and should feel comfortable using – when faced with making financial decisions:

3.  I made a mistake

Mistakes are tough to admit and even harder to live with.  Money mistakes that get buried become compounded disasters.  Teach your child that it is only human to make a mistake and that by admitting to the mistake, you can fix it and learn from it.

Often our kids hide money mistakes.  In college, they are eager to prove they are worthy of the independence. Chances are that will translate into them living beyond their means via credit.

Before they leave for college, tell them that while you believe in them, you anticipate they will make some money mistakes and that you understand that managing money on their own is a learning process – one that will include mistakes.  Continue reading