Teaching children financial responsibility is one is of the most important things you can do as a parent. Money affects most every aspect of our lives and financial irresponsibility is the cause for most divorces and credit problems in general. Here are 6 techniques to help you.



1. Set an example. Your kids watch you all the time. One day when I was putting gas in my vehicle my 5 year old son started to lecture me about using credit cards. You probably use some kind of card also when you fill up at the tank and yet like me you have most likely told your children that credit cards can cause many problems. Credit cards are tools but like a hammer they can cause damage if used incorrectly.

2. Start when your children are little. As soon as your children can ask for a piece of candy they are ready to start learning about money and financial responsibility. You can take a few extra minutes and kneel down beside them and show them the different markings on coins and bills and how they relate to price tags.

3. Use a budget. Every family needs a budget that is reasonable and that they can stick to. A budget can also be used to teach children financial responsibility because you can explain to them that you only have so much money to spend on certain things. This will help you when you are at the store and your child is asking for everything they see.

4. Delayed gratification. When your child sets their heart on something they really want sit down with them and develop a plan for how they can earn the money. If you just give them what they want every time they have a notion your children will not learn the value of money. Teaching children to learn while they earn is a gift from you to them.

5. Comparison shopping. When you take your children shopping it is probably a trial for you. Something I have done is I tell my children to find me the best price on certain items. You can even get them little hand held calculators and teach them how to figure prices based on ounces. You will be surprised how this will turn your shopping experience around.

6. Financial markets. Your children hear comments about the financial markets everyday and may even be asking you questions. This is the best time to start teaching them. Get some books from the library and rent movies like "Wallstreet" and "Trading Places" (Does contain nudity and language so get an edited version). You can watch the news with them and take time to explain to them the meaning behind the financial news. Very good stuff.

Teaching children financial responsibility will pay huge dividends down the road. There are many benefits for you also because your children will become more appreciative of you because of all you do for them. Tell your children that it costs between $100,000 and $150,000 to raise a child to the age of 18. Help your children by delaying immediate gratification and setting a good example. Educating them about the stock market is an excellent way to teach them also.