Along with your spouse, the next family members that should be aware of finances is your children. Kids need to have a grasp on what is and what isn’t something needed and that will help them with their spending habits the rest of their lives. Real Simple magazine’s November issue suggests starting those conversations as soon as they start to understand how much things cost and that’s usually early elementary school. According to a study by Schwab and the Boys and Girls Clubs of America, 60 percent of the teens surveyed  said that learning about money management is a priority.

Print out a copy of your family budget.

Go over it with your kids and show them where the money goes each month. If you don’t have a budget for the family, you can get a free one at Microsoft Office’s website. Search for “family monthly budget planner” and work on it together.

Discuss the plans for college.

College is expensive and the average annual cost is about $25,000 for a private school and $6,500 for a public one. Parents should keep in mind how to help their sons or daughters afford it, says the article.  When you have your child, talk to your spouse about college and start saving as soon as you can. When they get to middle school or so, talk about the costs. Saving for College can help you get started.

Consider a credit card.

At the end of high school, you want to make sure your child can be responsible and handle a credit card. I remember being in college and everywhere you went companies were hassling you to open an account and would give out free t-shirts and other items. According to Real Simple, the average credit card debt for college students is $3,173.  To teach them some responsibility you can add them to your card and set a limit. Explain the ins and outs of using one. Show your kids the proper way to use it and pay it off.

Many parents dread trying to teach their children to save money. They fear the idea will be met with resistance from the kids and cause so much foot stomping and argument that they never set out a consistent plan to teach their children how to begin saving accounts and learn a lifetime habit of saving. As parents, this is an incredible disservice to our children. If you take the time to teach your children to save money now, you will help them develop a lifelong habit that will save them untold amounts of frustration and disappointment in their adult lifetimes.

Start introducing your children to the concepts of money from the time they can count. Using coins for counting, exchanging pennies for nickels, nickels for dimes, etc. is a great way to get them familiar with how saving money leads to having larger amounts of money.

Giving children an allowance can be an excellent way to begin teaching them how to save. Determine the amount of the allowance according to the budget and according to their age. Many financial experts discourage the idea of tying household chores to allowance. Instead, make the allowance a freely given gift, but make a rule about saving a portion of the money. If your child receives $5 in allowance, perhaps the rule could be they need to save $1 of the money, while the rest is theirs to spend as they wish.

Take your children to the bank and help them open up a savings account. Many banks offer special savings programs for children, with interest rates, no minimum balances and even incentive awards for saving. Help them understand how keeping money in an interest-bearing account will actually earn more money for them.

Establish rules about how much of their savings is for short-term goals and how much is for long-term savings. It’s important to let your children withdraw a portion of their savings to purchase a special item they have saved up to buy. This teaches them the practice of saving for larger purchases, rather than buying on credit, which can ultimately save them thousands, even tens of thousands of dollars – or more in interest on revolving credit accounts.

Good spending and saving habits don’t just happen – they are learned. By beginning to teach your kids how to save money from a very young age, you are giving them one of the most valuable gifts of their lives. Preparing children for a lifetime of responsible spending and saving doesn’t need to be overwhelming or difficult. You can help your kids develop a lifetime of financial responsibility simply by teaching them the concepts of saving from the time they are old enough to ask for a dollar!

Debbie Dragon is a freelance writer providing articles for Billeater.com, a site that helps it’s readers save money, with unique money saving tips and tricks for your busy lifestyle.

Elmo is talking finances in a new PBS primetime special to air on Wednesday, September 9 at 8pm ET/PT. Given that about two out of three middle-class families are at risk of losing their financial security right now, Sesame Street joined forces with David Letterman’s production company and Lookalike Productions to produce this special called Families Stand Together.

Financial expert Jean Chatzky is also involved in the program. Chatzky says six out of ten Americans only have a nest egg big enough to last 90 days if they were to lose their job. She says four in ten Americans have enough savings to last less than 30 days if they were to lose their job. This special asks the question, how would your family handle this situation?

The program offers tips and ideas that families can easily incorporate into their own lives. The special is one part of a larger initiative to help families with children ages two through eight help their little ones’ physical and emotional well-being during this tough economic climate.

If you miss Wednesday’s program you’ll be able to catch it online at SesameWorkshop.org. Starting on September 9 there will also be additional materials on the site available for download. Beyond Wednesday’s prime time special, Sesame Workshop is also having events in 32 cities around the country beginning October 15. They will deliver bilingual education outreach kits that include a DVD, printed children’s story, and ideas about how to explain difficult times to children.

Image courtesy of Sesame Workshop

I’ve been picking up free school supplies for the last week or two at drug stores, grocery stores and office supply chains. Many businesses are offering free pencils, paper and pens to kick off back-to-school season. Even though I don’t have children I plan to donate these free school supplies to organizations collecting them for needy students and classrooms. Don’t know where to turn with your stash of free school supplies? Here are a few resources to check out:

Adopt-A-Classroom: Connect with a teacher in your area that is need of specific items. Fulfill their wish list so they can start the school year off right.

Do Something 101: Now in it’s second year, this national school supply drive is making it easy for you to help 13 million children living in poverty go back to school with the supplies they need. Now through September 19 just drop your donated supplies off at Staples.

Operation Homefront: Operation Homefront has teamed up with Dollar Tree to fill thousands of backpacks for military kids. Visit their website to find a chapter near you and become a part of the Backpack Brigade.

Operation Iraqi Children: Founded by actor Gary Sinise and author Laura Hillenbrand, Operation Iraqi Children has donated 1,420 pallets full of school supplies to Iraqi children. They still need more help.

Local Programs: There are likely local school supply drives going on in your area. Check your local newspaper or do an online search so you can help needy kids have a great school year.

Update: Here’s a great list of national chain stores offering school supplies for less than $1. Office Depot is also offering free school supplies this week (after mail-in rebate). So, just a few dollars and a little bit of your time could really help some kids out!

Along with the three “R’s,” should schools also be teaching students about budgets, credit cards and how to be financially responsible? I came across a blog today about this topic and it got me to think about my own education. I can’t recall ever being taught the specifics about budgeting in school, but thankfully I can say that my parents drilled into me that credit cards are bad and debt should be avoided. While I’m grateful that I had parents to teach me those lessons, I wonder how the children of parents who haven’t learned those lessons themselves end up handling their finances.

According to a report from the National Foundation for Credit Counseling, more than 40 percent of Americans grade themselves a C, D or F on their knowledge of personal finance issues. That’s probably pretty accurate considering that the average American household with at least one credit card has nearly $11,000 in credit-card debt. And the average worker saves just four cents of every dollar she earns. A survey of high school seniors conducted in 2004 measured 12th-graders’ knowledge of personal finance basics such as credit, saving, insurance and retirement. More than half (65.5 percent) of students received a failing grade on their answers.

Many educators haven’t focused on financial education in the classroom, in part because standardized exams don’t test for it. Only 17 states require that students pass an economics class before graduation. But The National Endowment for Financial Education says more states are requiring personal finance classes. According to the NEFE, at least eight states have legislated that personal financial education be either a requirement for high school graduation, or a course that must be offered. These states include Idaho, Illinois, Georgia, Kansas, Kentucky, New York, Texas and Utah.

There are some programs offering free curriculum to educators who want to teach personal finance.

National Endowment for Financial Education: This is a free program that covers topics including budgeting, debt, investing and more.

Jumpstart Coalition: Several individual lesson plans are available for free download here covering a wide range of financial topics.

Money Skill: This is an online course geared towards young adults that is available for free use by teachers, parents, non-profits, government agencies and employers.

Showing dad you love him doesn’t have to require spending a bunch of money. Here are some ideas for a frugal Father’s Day.

Free Card: Head to Photoworks for a free photo Father’s Day card worth $2.95. Use coupon code LOVEDAD at checkout and make sure you take advantage of this offer before June 16.

Free Parks: Several national parks are letting you in for free during three weekends this summer. The first free weekend just happens to be Father’s Day weekend, June 20-21. Check out this list of participating parks.

Free Frozen Yogurt: Take dad to TCBY on Father’s Day for a free cup or cone.

Free Photo: Give dad a favorite photo. Either get a free 8×10 enlargement from CVS with coupon code FREE8×10 at checkout or get him a free photo book from Photo Books Etc. Just head to FreePhotoBookOffer.com and use coupon code PBE509 to get a free 20-page soft cover photo book.

Free Admission: If you live near Hershey, PA you may want to take dad to Hersheypark for Father’s Day. Head to CVS to get a coupon for free admission with a paid admission for dad.

Free Breakfast: Cook dad some of his favorite foods on Father’s Day. Bring him breakfast in bed or pack up a family picnic and head to a local park.

It is estimated that most family owned businesses go under after the third generation takes over. Many experts predict that it is because the third generation has a lack of motivation and drive. Everything has been provided for them without question.

It was a relief to hear about Cook’s Pest Control considering these circumstances. This is a private pest control service that is one of the largest in the nation (even though only offers service in three states).

The third generation did not want to be a part of the daily running of the company so the forth generation is getting a shot. But it is not being hand fed to him. Instead he is training from the ground up in ever level of the company before he will have the chance to run the company.

Not only is it impressive that this fourth generation is being required to “do” something to gain his position but he is doing it. This tells me that he has no sense of entitlement but understands hard work as an important value to survival.

It only leaves me wondering how much trouble this country would be in financial if MORE parents and grandparents had just trained up children in the same way.

My first profitable business was started when I was seven years old. Our community was faced with a heat wave and the field below my house was being made into a parking lot. The crews working on it looked thirsty so I started a lemonade stand. I hired some of the neighborhood kids to take orders so drivers didn’t even have to get out of their cars. We may not have made a fortune, but Paul Harvey did mention me on his show.

My parents didn’t talk to me about the cost of my product verses the charge for that product. They just let us have fun. I guess at seven that is okay, but now that my own kids are starting to talk about starting a business I want to break it down so they will understand a basic business plan to prepare them for future endeavors.

1. Cost of labor. They are doing all of their own work, but I’m having them keep up with the hours. They need to know how much time and effort goes into the product so that they can better determine if it is ultimately worth the cost (to them or to their customers).

2. Cost of supplies. They are paying for their own supplies so that they can understand what the real profit is that they are making.

Learning these two factors alone won’t make them successful businessmen but it will go a long ways toward directing them down the right path.

Not all kids are interested in recycling. Even fewer are focused on finding ways to help other people. But there are probably only a hand full that are looking for ways to use recycled material to help the homeless and other people faced with a tragedy.

Max Wallack is one of those kids and his design helped him walk away with first prize at the Design Squad’s Trash to Treasure contest. Max created a “Home Dome” that was made with plastic, wire and packing peanuts. The prize was $10,000 and a Dell laptop. Not too bad for finding a new way to utilize trash.

It is important to encourage kids to stretch their imagination and to compete. Contests like these are great for doing just that. It is even better that a 12 year old boy has been raised with the consideration for others that sparked his desire to create shelters for the homeless and others hit by a devastating situation.

The money may be great, but sometimes there is more to life than money. Helping others and helping out the environment is a great way for Max Wallack or any kid (or adult for that matter) to spend some time.

These tough times call for tough measures, and even my twelve year old son is understanding the importance of making money these days. Here are some of the things that he is doing that maybe could help you as well.

1. Sell what you find – he’s been picking up large muscle shells along the creek bed. Originally his grandmother said she’d buy all that he could find, but that changed pretty early on. Now he just offers to sell one to anyone who walks in the door.

2. Sell to anyone around – it doesn’t matter their age, the relationship or any other factors. He has been known to try and sell his three year old brother items.

3. Sell what you don’t want or haven’t used – my son recently offered me a cornucopia of items that even included one that I gave him as a Christmas present just a couple of years back.

4. Sell with a story – no matter what he is trying to sell, he always provides a reason for needing to make extra money. A few years back he went door to door in his grandmother’s neighborhood selling balloon animals for $1 each. He told people that he was earning money to send his dad out to dinner for his birthday (it was true and he did).

He may be twelve but he is already learning that someone out there is willing to buy anything that he is willing to sale. He knows that some may say no, but he is willing to keep asking until he gets a yes.

Yesterday we went out to dinner at Cracker Barrel. Three small children in that restaurant is NOT a good thing. There are just too many things to get into. I was blessed that they waited until we were on our way out before saying the words all parents dread, “I want . . .”

The stuff that they wanted was either giant candy, nick knacks or other items that are not needed (and definitely not wanted) around the house. Does anyone really need a 10lb Sugar Daddy?

The answer is no – and it was for us last night. Even though the kids brought their own money we still said no to the purchases that they wanted to make. It is important that they understand how to make wise purchases with the money that they have to earn.

It takes practice to be able to say no in these situations and it also takes hearing the words to make the kids accepting of the word. Start practicing with yourself and it will be easier for you to use it with the kids (and the kids will be more likely to accept the change if they see a change in you first).

This year we encourage our children to make gifts for friends and family. Our oldest son took the challenge to heart and made gifts for everyone from the neighbors to teachers and every family member that he came in contact with during the holidays. My biggest fear was that people would not appreciate what he did, but most of them were truly grateful for his thoughtfulness and his effort.

1. For his cousin that hunts he used paper plates that he cut out to form a box and added lint, pine pieces and some other items to create a tinder box.
2. For his best friend’s brother (who is really into girls) he created a list of pick up lines (that only a 12 year old boy could come up with).
3. For the cats in the house he used lint from the dryer to create a mouse – seriously it looks exactly like a mouse when it is viewed from across the room!
4. For his grandmother he made a necklace and for his grandfather he made a miniature American flag paper weight.

The list goes on and on. He started in September and spent a great deal of time thinking about many of the gifts. Most of them he created from trash or items sitting around the house (although he did spend a little money along the way). Most of the gifts that he made were from nothing – which goes to show that you really can get something for nothing if you use your imagination.

We’ll finish 2008 with 24 bank failures in the U.S., more than have failed in the entire rest of the decade. Two of the three largest bank failures in history, Indy Mac and Washington Mutual, happened this year as well. Let’s hope for a much better 2009!

The holiday season may not seem like the best time to teach kids about finances, but it could be the best opportunity you have ever had.

1. Cash is becoming a top gift by family members to the nieces and nephews (and even grandkids) in the family. Take the kids shopping at the after Christmas sales to help them see ways to get more bangs for their bucks.

2. Let it go. Getting new gifts is exciting but finding room for those gifts may not be. Before the kids go back to school use the time at home to sort through old toys and belongings – toss the broken ones or ones that are missing parts and give away those that are still in good shape but are never used. There should be plenty of room for the new gifts to be enjoyed.

3. Always say thank you. Let the kids decorate blank note cards and then write thank you notes to all the people who gave them gifts. Be sure to include a sentence or two about why the gift is appreciate (like what will be done with the cash or how the toy will be used).

Now is the perfect time to get the kids started on the right financial path. Teaching them to appreciate what they have, pass on what they no longer need or want and using the money that they do have in the best possible way (like with sales) are all tips that will help them along to a sound financial future.

There was a television show on last night and the boy was sitting in Santa’s lap telling all the things he wanted for Christmas. When the boy mentioned they were all games, Santa offered him a checker set. “What is checkers?”

The point was that times have changed. The magic of Christmas is lost. Fortunately the end of the movie brought the return of the magic of the season. In the end it was a testimony that it’s never to late.

1. Limit the amount that is spent for Christmas and birthdays and other events. My oldest son recently turned 12 and we spent a total of $160 for his birthday. That includes the party at the local skating rink (where all the parents skated as well as the kids). He had a great time – the whole family had a great time – and we didn’t have to break the bank to get there.

2. Just say NO! There is no one that NEEDS a Wii (or what ever electronics is top on the list this year). I can remember growing up and having to rent a VCR when I rented movies because we didn’t have one. The same goes for a personal computer (granted that was a few years back). The point is the same. They will survive, uninjured, if they don’t get everything they want.

3. Limit family giving. Grandparents can be especially dangerous. There is a three present limit for the grandparents in out home. Any more than three and we put them up to be opened the next year (or never). It makes the grandparents think long and hard about what gifts the kids will really enjoy.

4. Teach the joy of giving. Each of our boys began purchasing gifts (or making gifts) for friends, family and teacher when they were about six. Although we help to steer them along, they use their own money and make their own final decisions. They are learning to see what a person already enjoys and then try to match that. The season is as much about the giving as it is about the getting for them.

The kids will survive. It doesn’t take a bank breaking gift giving moment to make cherished holiday memories. Think back to your own childhood and the memories that ring clear – then find ways to take the monetary out of the holiday and bring the Christmas spirit back to life.

Christmas is just around the corner and many kids spend all their waking hours listing the items that they hope to find under the tree. I tried to the trick of giving my children some catalogs and letting them go through and circle what was interesting, but they decided it would be more fun to help their dad split the firewood. They knew it was something that I had been asking for AND they knew they would get to build a fire.

Kids don’t need (and most don’t really want) more stuff. Attention is the thing that is craved. In reality it is craved by all of us. The gadgets and items may seem nice, but they are no replacement for an act of kindness or words of adoration.

This year spend time with the kids instead of getting lost in the wrapping and mistletoe. Make some Christmas traditions that will far outlast any item that could even be put under a tree.

1. Make a day of looking for a Christmas tree. Go out into the woods (if you have permission) and cut your own or go to a Christmas tree farm. Decorate the tree as a family – have eggnog and cookies with music in the back ground (no television).

2. Make Christmas cards (or thank you notes for after Christmas) to send out to family and friends. Get out the paints, stamps and any other craft items you have around the house and use card stock to create cards that are more of a gift than just a card.

3. Set aside a few nights to do Christmas lights. Find displays in your community that are free (or inexpensive) and make an outing for your family to visit the displays.


4. Make one day in the holidays an official ‘Kids Day’ and let the kids decide what to eat, where to go and what to do. Help them plan the event by researching activities and even recipes together. Let them get their hands dirty -“ so to speak in the kitchen when creating the recipes.

Time is something that money can’t buy and that most of us hunger for from those that we love. Kids may be screaming for the latest gadget, but what they want more than anything is time with the family. Make that the biggest gift you put under the tree this year.

1. Make Christmas about doing instead of about getting. We take several trips to the lighted neighborhoods to enjoy the atmosphere and the decorations. Many of the displays in the community are completely free. These trips will create memories that will outlast any gift.

2. Set a price limit on what you are going to spend total for Christmas and then stick to it. The number one reason people get into any kind of financial problem is because they do not set a budget or stick to that budget – holidays are no different.

3. Talk to the family NOW about making this year about giving instead of about getting. Plan on one or two gifts per person and then allocate the rest of your budget to go towards doing things for the neighbors or maybe throwing a holiday party.

The whole family will appreciate the gifts of time and memories. These tips can save you money and also make the holidays much more special for everyone.

This morning my son asked me why health insurance costs so much. I’m sure there are many people out there that would like to know that same answer. It’s rather simple. Health insurance covers too much.

Look at it this way. If you own a car then you have car insurance. Most of us by car insurance to protect the car (some of us just do it because it is the law). Any one with car insurance does not expect that insurance to foot the bill when the oil gets change. The car insurance does not fix the broken air conditioner. The car insurance does pay if there is an accident – it covers the major problems that the car faces.

If the car insurance did pay for oil changes, tune ups, brakes, air conditioning repair and all of those other little things that can go wrong with the car then the premiums would be through the rood. Insurance companies would have to figure in the costs of those routine mechanical issues when they figured up premium prices.

Back to the health insurance – there was a time when health insurance covered the major incidents in life (surgery, hospital stays, and things of that nature). Over the years the coverage has extended to the routine procedures of life (check ups, sniffles, or what ever else might come up).

It really is easy to understand now why health insurance prices are so high – the expectation of the consumer has risen.

One week ago my husband took my oldest son to buy brand new running shoes. My son has been getting up every morning and walking/running one mile. We felt it was time he got some new shoes.

The morning dew is heavy right now and we walk in a field, so I set up a rack for us to hang our shoes to dry instead of dragging in a bunch of wet grass and dirt. Friday afternoon I realized one of my son’s shoes was missing. His brother found it in the corner of the garden – unsalvageable.

My son was devastated. ‘Do you know how much those shoes cost?’ I assured him that I did know how much and that I also was fine with him getting another pair of shoes. Things happen in life and I’m not going to fret because they happen.

It was only a while later, when I was retelling the story that I realized how much my eleven year old comprehended the value of the dollar. He wasn’t worried about whether we could AFFORD another pair. He was concerned that the money that had been spent had gone to waste.

There is no reason that children should worry about money – even if mom and dad don’t have any. But they should learn to appreciate the cost of things.

1. Set up a system that lets them pay for things on their own.

2. Compare prices at different stores and compare the quality of the same (or similar items) at the different stores.

3. Visit a second hand store or a thrift store AFTER a retail store.

Just a few simple steps could be the key to helping your children learn the value of the dollar (and maybe even awakening a whole new you).

UPromise just released a new way to save for college. Use electronic coupons available at Upromise.com, shop for those products and the money you save will be deposited into your special UPromise account. There’s no clipping required– just click the coupons you want to activate, register your grocery and drugstore cards and then shop for those products. When you give the cashier your store card, the money will automatically go into your UPromise account. The E-coupons change every month, so check back for the deals you’re looking for. Current coupons include savings from brands like Charmin, Enfamil and Huggies. It’s a great way to start saving for college simply by purchasing products you use.

The extreme heat and lazy summer days have bred some bad habits in our home. In the past we have tackled the habits of television and computer with tokens. This year it was important to get the electronics back into control and also begin teaching basic checking.

It all began with a closed account. I had almost 1000 checks left over and no idea what to do with them. They became the inspiration for the ‘Bucks Banking System.’ I sat down and made a chart of activities that the children could do to earn bucks and also things that could be done to be fined bucks.

My husband got involved by picking up some registers from the bank. He also has some suggestions for additional fines or benefits from the bucks. Then the game began.

1. At the end of each week the bucks are tallied and a ‘check’ is issued to the child in that amount. Each child is responsible for recording the deposit and also keeping the register balanced.

2. First thing each morning each child writes a check for the amount that was spent the day before – including any fines that were accumulated. Television and computer costs one buck per 30 minutes of use.

3. At the end of the month the children will have the opportunity to cash in unused bucks for special activities – like putt-putt with dad or a trip to the bowling alley.

4. The end of the month will also bring a ‘bank statement’ to each child. We will then work through the task of balancing a check book with the statement.

Since firs beginning the game the children have gone from uncountable hours in front of the television to usually less than two hours. Instead of watching television or playing computer games, they are drawing pictures, reading books and making crafts.

They are also getting use to writing out checks, keeping a running balance and also working with statements. By the time they open their first account they should be ready to hit the ground running.

Today was the first day of business for our children and their flower nursery. They spent four hours at the local Farmer’s Market pitching their goods to folks stopping in for fresh fruit and vegetables. It was a tough crowd for the most part, but they were both happy with the $15 that they each walked away with (after putting aside a portion for the business and a portion for taxes).

Each of the boys (ages 11 and 9) took turns asking people walking past if they were interested in the flowers. The boys would then explain the products and the prices. The oldest is more comfortable with strangers and fell easily into a regular spiel that he would present, but even the younger son eventually built up the nerve to ask total strangers if they wanted to buy some of their flowers.

The day was even more empowering for them because mom had the sense to print up some business cards for each of them. The eagerly handed those out to anyone that would take them and sometimes to people who didn’t really want to take them. Hopefully the enthusiasm will pour over into the upcoming week when they will have to get out in the dirt and dig more flowers and pot more plants.

All and all the day was a success. The boys learned something about business, advertising and hard work. Mom and dad learned that it is okay to sit back and let the kids struggle a little. And the oldest son reminded us (as we were dividing up the profits) that we should give 10% off the top of all our profits and not just what we each were going to get paid.

I will have to say that even if the business goes no farther today’s results made it worth the effort.

There is so much information thrown at children today that it should be no surprise that the majority of children grow up to be out of control financially (and other ways as well, but that’s for another day). It is time for parents around the globe to step up and know when it is okay to say enough!

1. No kid under the age of employment NEEDS a cell phone – unless it is one of those emergency cell phones that will only call up to four pre-programmed numbers.

2. No kid under the age of 30 needs a NEW car – it doesn’t matter how good their grades may be (my first car was a Chevy Chevette and if I can survive then any one can).

3. No kid at any age needs to be watching television or playing video games for more than two hours each day – combined (and that goes for mom and dad as well).

4. No kid under the age of 16 has to have a personal computer all his own.

5. No kid under the age of four or five needs a birthday party – she won’t remember it anyway.

It is okay not to give your children every little thing that they see on television or that their friends may get. Make them earn their extras with chores, behavior and attitude and even then limit it to something reasonable. Your children will eventually thank you for it!

My first business was a lemonade stand. I even hired the other kids in the neighborhood to help sale the drinks. It was a HUGE success and not only did I make a bundle, but I was featured in the local paper and also mentioned on ‘The Rest of the Story.’

The hitch in the wagon was that my parents did not make me pay for anything that I used. Although I learned a little about business, I did not learn enough. It would have been nice to have had to budget my money, pay for expenses and then see how much I earned per hour from the endeavor.

My own children (currently 11 and 9 years old) have tried a couple of minor businesses out here and there (like selling balloon animals door to door in grandma’s neighborhood). But they are about to get a taste of the big time. For the last couple of days we have been digging, dividing, labeling and potting plants for them to sale at the local Farmers Market. They were responsible for the advertisement. They will be responsible for the selling of the plants. And they will have to figure out how much profit there is AFTER all the expenses are paid out.

It will be a great learning experience for them (and for mom and dad as well). They are showing an interest in business and we are doing our best to help mold that interest into something that they could actually use in the future.

A penny doesn’t get you much these days, but for a limited time it will get you some Sharpies at Office Max and it’s just in time for heading back to school. Simply print out these coupons from Office Max, take them to your local store and stock up. For a penny each you can get up to three Sharpie Mini Permanent Markers and up to three Sharpie Highlighters. The coupons are only good in the store and until August 21. So grab your pennies and head to Office Max!

One of the biggest factors in the current finance crisis is the lack of understanding by most borrowers. Consumers in general owe money now than at any time in the history of the United States. If you want to raise children that don’t stay in this financial merry-go-round then you need to take steps to teach them how to manage their money.

1. Start young. As soon as they have an awareness of money begin talking to them about budgets and savings.

2. Do what you say. It is great to teach your children proper money management but they are really going to learn more from what you do than what you say. Have good financial practices and you will teach good financial practices.

3. Teach them to give. Children need to learn to give back to the church, charity or other helping organizations. The 10% tithe for Sunday School should come out of their own pocket.

4. Keep talking. Share your own experiences with money when your children are age appropriate and always be willing to talk with them about money (how to save, how to invest as well as how to spend).

There is no magic formula for when to teach your children about money or how to teach them. Each child will be a little different from the last. The key is THAT you teach them in the way they should go and the knowledge will not leave them.

‘Credit cards are evil.’

It was apparent that my conversations with my husband and with couples I’ve counseled about finances had rubbed off on my son. He was watching an ad for a credit card company and giving his view on the situation.

The next several minutes were spent discussing the credit industry in a way that a ten year old might understand. He walked away a little less adamant about the companies being evil, but he was still not impressed with the whole concept of debt.

It’s a good thing for children (even ten year olds) to begin to understand the difference between having credit and having debt. Credit is when you have the money to pay back what you owe (like when you leave your wallet at home but the drug store lets you take your prescription and just bills you for the total). Debt is when you don’t have the money (and sometimes don’t even have a way of coming up with the money).

I explained it this way:

Debt is when you pay someone to use their money because you don’t have the money yourself.

Credit is when you use someone’s money even though you have the money already.

Credit is fine as long as it doesn’t pull you down into debt.

One of the best gifts my parents ever gave me (besides life!) is a college education. I was one of the few to graduate without ANY debt. That’s especially amazing when you see a statistic like this: according to CollegeBoard.com, the average yearly tuition rates at a private four-year school costs $23,712-up 6.3% from last year. The older I get the more I realize how valuable being debt-free out of college really is. Sure, I helped them out a little. I went to a state school, worked part-time jobs, got a few scholarships, and managed to complete my courses in three and a half years. There are ways you can cut college debt. Here are a few of them.

Sign up for UPromise

UPromise is a free program that can help you accrue college savings by putting a portion of money you spend in a special account or even into a 529 Plan. There are over 40,000 participating retail stores and services. Once you’ve set up an account, you can start earning.

Contribute to 529s

If your children are at least a few years away from heading off to college try contributing to a 529. A 529 Plan is an educational savings plan designed to help families save up for future college costs. The main benefit of having a 529 is the tax savings. Your contribution isn’t deductible, but your investment will grow tax-deferred.

Take Advantage of Advanced Placement Courses

AP English wasn’t fun, but it was a good way for me to earn college credit for free while I was still in high school. These are classes you can take for free typically during your junior and senior years, but you will be able to earn college credit with them. Study hard, though. Your grade will impact your college GPA.

Research Scholarships

A great way to help pay for college is by snagging some scholarships. Estimates show there’s $130 billion worth of scholarships out there for the taking. Get online and research available scholarships on sites like CollegeScholarships.com or Fastweb.com.

Attend Public School

Iowa State University wasn’t my first choice. But my parents said I had to go to an in-state school. And I’m glad I did. I got the same degree I would have earned at a higher-priced private school, but without all of the debt. According to CollegeBoard.com, the average yearly tuition rates at a private four-year school costs $23,712-up 6.3% from last year. Compare that with the annual tuition rate at a public four-year school: $6,185. It doesn’t take a Ph.D. to realize that you can save big bucks by going public. You’ll save even more by attending a two-year college. On average, tuition there costs $2,361.

Most people celebrated the July 4th with fireworks and cookouts. Ours had a different kind of explosion. An 85 foot tree lost one of its giant limbs and it fell through the roof of the house.

That is a $500 deductible payment that we have to pay out. There are some repairs you can skip, but a hole in the roof is not one of them. It is already a tight month because of expected payments so this would have sent me over the deep end just two years ago. Now I have ways to plan for the unexpected.

1. Each month I set aside 5% to 10% of all income for savings. I have it in long term savings and short term savings.

2. The quarterly and yearly payments (like insurance premiums) have been figured up into monthly amounts and each month I put that money in a savings account for upcoming bills.

3. All bonus monies (including things like Tax Rebate checks) have 40% allotted for savings.

Putting back a little here and a little there means that there is the money that is needed when the unexpected falls on your home and splinters the plans that you had.

The first time relatives heard my husband and me talk about children they were shocked mainly because we wanted a large family. “How are you going to pay their way through college?” “How are you going to get them toys for Christmas?” “How are you going to buy clothes for them?”

We always had an answer for the questions but they were not the answers most people want or expect to hear. We didn’t plan on doing any of those things. And so far we haven’t.

Society today is a consumer society. Teaching kids from birth that it’s all about the getting only enslaves them into a life of debt. Instead of getting we are teaching our children about getting.

1. Christmas is all about planning gifts for others (preferably ones that are hand made). Our children have never made a “Christmas list” for their own benefit (and the oldest son is now eleven).

2. Savings is a fundamental part of our children lives. They save a portion of everything they receive – from gifts to allowance.

3. Credit lessons are a regular part of conversations. Our children understand how credit works and how much it costs.

Instead of teaching our children to live a life of slavery we are giving them the tools to live free.

If you really want to cut down on your monthly expenses and want to add some change to your wallet then cut back on the gadget and sell off what you don’t really need.

1. Cell phones – the truth is that very few people really need a cell phone. Many of us could go for days without actually using the one we have. Cut out the cell phones for kids (of invest in those phones that only call certain numbers) and you might be surprised how much that monthly expense falls.
2. Televisions – many services charge for each room where you have a television connected. Cut back to one or two (in the main rooms) and watch as a family.
3. Video games – there are no real benefits to the majority of video games available. Get out and do the real thing instead of playing it on the television.
4. Portable DVD players – it may be nice to be able to quiet the kids while you are traveling, but wouldn’t it be even better if you could find a way to connect with your kids during that time instead?
5. Ipods – not only do they keep the kids from communicating with the people around them but they can also be very harmful to hearing.
6. Computers – limiting the computers in the home will cut back on expenses and help you keep up with what you kids are doing when they are online.

Technology can be great but it can also be expensive. Know when to say when and you can end up saving yourself a fortune.

It is just as important to educate children about money – the value, the way to use it and the way to save it – as it is to teach them about any other aspect of life. The truth is that the way a child grows up understanding finances could mean a positive or negative future.

The best way to get your child to follow good financial guidelines is to follow good ones yourself. You can also help them along a strong financial path by giving them encouragement and assistance along the way:

Limit your spending – if you don’t have the cash then wait to make the purchase.

Help children with entrepreneurial attempts (like a lemonade stand) and make sure that they learn to balance what they put in verses what they get out.

Open a savings account together - one for you and one for your child – and then make regular deposits together as well.

Teach them to give – having a charitable heart and learning the art of giving will help your children to grow up desiring to give more than to receive.

Make finances a part of your regular discussions with your children from an early age. The sooner they begin to understand the value of the dollar then the sooner they will be on their way to a financially secure future.

Trips to the mall and days at the pool can be fun, but it’s not a very productive way for kids to spend their summer. Why not get your teen or youngster to earn some cash this summer? They’ll learn responsibility and have some money to spend on those trips to the mall. Here are some ideas for summer employment.

1. Babysitting. It’s almost like a rite of passage for teens. Put the word out at your church or with other parents of young children that your teen is looking for some summer babysitting jobs.

2. Pet care. Summer is a busy time for most people. Your neighbors may be looking for a pet-sitter or dog walker. Have your youngster make flyers and pass them out.

3. Landscaping. Grass grows fast in the summer. Friends and family members may want help keeping their yards looking good. Offer a menu of services like mowing, weed pulling and watering.

4. Garage Sale. Let your teen organize, plan and hold a garage sale. Tell them they can keep a percentage of the profits. This will be a fun learning experience for them.

5. Part-time work. Teens can search through the want ads or check with local stores about part-time summer jobs. Swimming pools, retail stores, and grocery stores are good options.

Last night my son attended his first auction. He’s eleven and was armed with $1.50. If you have never been to an auction then you may not realize that $1.50 is not likely to get you very far. He was brave. When he saw something he wanted, he jumped right in – and was promptly out bid.

I had a flashback to my first auction. I bought a stuffed mushroom stool ‘ blue ‘ which has survived high school, college, and 15 years of marriage and children, although it is now on its last leg. It was probably the best $2 I ever spent. I had mixed feelings about him not being able to purchase the item that he wanted. He didn’t discuss bringing money with me before hand and he definitely didn’t discuss bidding once we arrived, but it is disappointing when you don’t get what you want.

On the way home, he said that next time he would take $10 to the auction. It’s his money, that he is earning and saving, but I still thought it was a good time to explain how to handle an auction and any purchase for that matter.

1. It is important that you go into the purchase with some knowledge. Understanding how much value something has can help limit the emotional high that many people get (particularly at auctions).

2. Set your limits according to the known value.

3. Be willing to walk away.

4. Only spend the cash you have on hand.

After talking about it on the way home, I think he lost some of his interest in ‘out-bidding’ the people around him. We have another auction to attend in August and if he wants to go then I will let him help me bid on some of the items there.

Letting kids get involved in purchase situations can help them to understand how it works far better than all the lectures in the world.

There are too many people in the world today who have never been taught basic finances. Their parents didn’t show them. The schools didn’t show them. What little they may know they have usually learned by hearsay or from the media – neither of which are the best sources around. Start kids off early learning how to create and maintain a budget.

1. Get a set of blank checks from you bank. Teach the children how to write checks.

2. Get a register from the bank as well. Show the children the importance of maintaining an orderly register.

3. But it into practice. At the beginning of each week, give your children 100 ‘dollars’. Require that they write a check for certain activities – so many for an hour of television or computer time or things of that nature.

4. Check their work at the end of the week and give them a bonus for good work (a family movie night could be a good incentive).

Learning basic finance skills, like keeping a well maintained checkbook, will help children function better in the future. The more they can learn now the better off they will be tomorrow. If you don’t know the best way to teach your children about checkbooks, check with your local bank to see if they offer some kind of teaching tools.

It is important to start teaching children about money as young as possible. It is equally as important to limit their personal experience until they are old enough to understand. Here are some tips for timing (and amounts) for giving your child an allowance and for determining if they receive the allowance each week.

1. If they can’t count money then they don’t need it.

2. Start at a single dollar and then increase each year on their birthday (we do it in $.50 increments).

3. Start all of your kids at the same age to avoid ‘the favorite’ remarks.

4. Make them work for their money (if mom and dad don’t get it for free then neither do the kids).

5. Keep the expected chores (feeding the pets, making the bed, etc) separate from allowance chores.

6. Take out for taxes and savings (if they learn now then they won’t be so shocked in the future).

Although every child will be different (as far as learning numbers and having an interest in money) most six year olds are ready for the responsibility. Take the time to explain to you child the privilege of an allowance and what is expected in return. Make them responsible for the little purchases (snacks at the ball field or tokens at the arcade) and they will soon learn the true value of small change.

Children learn what they see. My husband and I didn’t exactly learn the best lessons. We have spent much of our marriage trying to recover from what our parents showed us and to get to a point where our finances were right. Along the way we have tried to make the future easier for our children by helping them learn from our mistakes.

At an age six, each of our children started getting an allowance. When the house runs smoothly (we do chores as a team) then everyone gets their allowance. From that allowance we pay 10% tithe, 20% taxes and 30% to savings.

Tithe usually goes in a can at Sunday school, but everyone is encouraged to seek out a charitable cause. The important thing is that they learn to give and not so much where they must give.

The taxes go into a jar in the kitchen. At the end of the year we vote on how the money is spent – on a vacation, something for the house or a family pass to the local water park. They learn that part of their income will go to the greater good.

The savings goes into a bank account. Anything big that the children want, they have to save their own money to buy. It is hard to wait for something that you want, but you will appreciate it all the more. More importantly, you often learn that what you thought you wanted wasn’t that necessary after all.

The process of learning finances is one that will probably go on for most of my life. My hope is that my children can learn from my mistakes and the lessons that we are teaching them now. Then they will have a jumpstart for a healthy financial future.