If you are single, you are probably only harming yourself (and future kids) if you have toxic spending habits. However, the bigger problem comes up when you have a family. According to savology.com, 72% of US households don't have a financial plan. It gets worse. 69% of the Americans have less than $1000 in savings and another 34% have absolutely no money saved at all.
You can get into the habit of spending money on small things like eating out or getting daily coffee. With this habit, you can burn through your income very quickly. It might seem like a couple of extra bucks here and there, but when you add it up, the sum turns into a huge amount.
You don’t plan your spending
If you overspend, you have another problem in line. Overspending also means that you are failing to plan your spending. You have no idea where your money is being spent and how much. Once again, probably before the end of the month, your bank balance might be zero even though your bills didn't consume your you entirely.
The solution to this problem is very easy. Along with your partner, you should identify short-term, intermediate and long-term goals so that you know where to spend and how much to save.
You hide what you spend
If you are not telling how much you are spending, there is a very good chance you overspending. If you continue to do this, it can have severe repercussions for your entire family.
To break this habit, you should have a conversation with your partner to figure out where exactly your money should go. You could also put aside a sum of money in a separate account. This could be safe money and something you could spend as you wish.
Keeping up with others
Even as adults, we have the desire to keep up with others. If other people are ordering in, so do we. However, the problem occurs when you overspend. This also sends the impression to your children that it is okay to spend even when you don’t have it.
You should know your limits and teach values to your kids.