One of the hardest lessons that we’ve learned from the economic downturn is that we all need to be more careful with our spending. And that includes teaching our kids how they manage their spending and saving. There are a number of ways to teach kids responsible financial 
behaviors, from modeling good financial management to online tools. In this article, we’ll look at some tools parents can use to teach kids and teens good financial habits.
1. Online tools
Many universities and nonprofit organizations offer online tools for parents who need help in educating their kids about financial topics in a way that children can comprehend and even find entertaining. Oregon State University offers For Parents, which gives tips for explaining finances to kids from toddlers to teenagers. The Mint gives a solid overview of checking accounts and saving for kids of all ages. For teens, Mad Money gives an idea of what life outside of their parents home costs on a day to day basis.
2. Model good behavior
In order to keep kids from falling under the spell of spending what they don’t have, teach them to hold money in their hand and manage what’s in front of them. There’s something about forking out real coins and bills that drives home the idea that money should be managed carefully. Checks and debit cards can be too vague of a concept for the little ones.
Money is a great way to teach your kids patience. As parents, it’s difficult to ever say no, but teaching them good saving habits early on will pay off in several areas of a child’s life. If you’re teaching kids to save and wait for that toy they want, don’t take them along to the electronics store and buy a flat screen TV on an impulse buy.
3. Make a traditional credit card their last resort. They seem like a free ticket to buy anything, but remember they can harm both parents and kids alike. A child under the age of 21 requires a cosigner for a credit card. For tips on advising kids and teens on the importance of using credit cards wisely, this article can help.
Andrea is the Chief Chick of Smart Money Chicks. After filing BK twice (once because she panicked, second time because the pro messed the first time up), she realized that it all could have been avoided if she understood more about how her Finances worked and the options available. At that point, she wanted to help as many as she could never make the same mistakes again. Our Promise is that all the content you read on here is created or edited by Andrea