Is your child over-indulged? Before you answer, take a quick peek into their toy closet. Most are filled with toys that your kids begged for that are now forgotten and never played with. As they get older, parents continue to have a hard time saying no to every gadget or gizmo their teen wants. However, children who are overindulged have a harder time coping in life.

Paige McCoy Smith, our Not-So-Perfect Parent, is here to offer parents solutions for dealing raising kids in this “I Want More” generation.

What are the life-long consequences of over-indulging your children?

Kids that are over-indulged have a harder time coping in life. In my opinion, parents who over-indulge their children fail at the most vital aspect of parenting – helping their children grow-up. It’s a tremendous disservice to our kids when you’re giving them everything they want. Kids grow up with unrealistic expectations and a weakened work ethic. In addition, kids are completely missing important financial lessons resulting in poor credit and excessive debt many times before college graduation. This has led to the fastest growing bankruptcy rate being adults under 25 (Ewold “Dollars & Sense.” July 24, 2003. Kids are Spending Big Bucks. Minneapolis Star Tribune).

I am sure advertisers are not helping this trend. How are advertisers reaching the younger generation?

Companies have wised-up to this “I want more” generation and are spending $14.4 billion dollars annually to advertise their products to kids (Margaret Magnarelli. March, 2004. Big Spenders. Parents). Plus, they are using the internet and even cell phones to reach the younger generation.

What can parents do to avoid overindulging their kids?

Monkey See, Monkey Do
If you’re spending too much money and you’re kids are feeling the family’s financial stress, it’s time to rein it in. Be a good role model to your children and allow them to see you make smart financial decisions.

Set Limits
This means setting reasonable limits for TV watching, video game playing, french-fry eating, and, of course, money spending. Kids need to see that too much of anything is rarely a good thing (with eating vegetables being the one exception).

Give Allowance
It’s important to note that an allowance should not be given for simply existing. Allowances should be provided for chores done and tasks accomplished. Kids will learn the whole work-and-get-paid system thus building a positive work ethic.

Teach Money Management
Using the allowance system, teach your kids the value of saving a little and giving a little. Educate them about finances and investment opportunities and participate in how your child spends his money.

Discerning Consumer
Sure, at first they won’t understand what “discerning” means, or for that matter what “consumer” means. However, you can educate them on the sneaky tactics of advertisers and teach them the difference between wants versus needs.