Marc Guberti

Fri, Jun 20, 2025, 8:16 AM4 min read

Children mirror their parents. The way parents act and speak will influence what their children become, and this truth branches out into all areas of your children's lives. With that in mind, financial guru Ramit Sethi revealed what parents should have said to their kids about money. Making this mistake can cause your children to endure financial hardships and have a more difficult time growing their careers.

"Your kids will absorb it," Sethi said.

Sethi shares what you shouldn't do and offers some suggestions of what you can do to make your kids confident with their finances.

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Sethi says that you should never use this phrase in front of your children. Saying it once is bad enough, but if you repeat it, your child may develop negative thoughts about money.

For instance, your child may view money as a scarce resource and feel like it's difficult to get ahead in their career. If your child has a successful career, they may avoid spending money in general, even when spending it would be a good thing.

Children will look at your actions and words as guidance, whether it's for the best or for the worst. Make sure you are very careful about how you speak about money and working hard to achieve goals.

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One of the concerns Sethi brings up is that kids who hear that their parents can't afford anything may be reluctant to spend money, even when they have more than enough. While saving money is a good habit, Sethi is against having millions of dollars in the bank and never tapping into it.

He believes that people should aim to live rich lifestyles. That doesn't mean you go out and buy luxury cars and designer bags that you can't afford. It simply means being smart with your money but giving yourself some flexibility to make discretionary purchases that make you happy.

For instance, he's against impulsive spending and buying things that don't make you happy. However, if you have wanted to go to Hawaii for more than a decade, he's the type of financial guru who would encourage you to make that trip once you have saved enough money.