e all want the best for our children. We want them to have good values and an education that will help them become successful. And, of course, part of that education includes learning how to manage money. That’s a complex subject. There is so much to learn—how to earn money, how to save and invest it, how to stay out of debt—and more.

To add to the complexity, kids of all ages are targeted by mass marketers pushing a single message—buy everything and anything you want now. Plus, money is much more abstract than it used to be. Seeing mom and dad use credit cards, debit cards, ATM machines, and the Internet—instead of cash—can be confusing, especially for young children.

So how do you impart the wisdom your parents and life experiences have taught you about financial matters? How do you get the attention of children who live in a high-speed, high-tech, insatiable consumer society? How can they learn and practice habits based on healthy financial values?

The Big Ideas

When you get down to it, there are six major areas of personal finance. Almost every financial skill your child needs will fit under one of these topics:

• Setting goals
• Earning money
• Spending money wisely (budgeting)
• Understanding the time value of money (saving and investing)
• Using credit responsibly
• Protecting assets

You can teach your child about these areas progressively. In other words, begin when he or she is just a toddler and build on each idea as your child is ready to absorb more complex information. It’s important not to wait. Habits form early!

Some parents may be saying, “I haven’t saved enough.” “I’m in debt.” “I don’t know much about investing.” If you are among the many who feel less than secure about their money skills, don’t despair. You can teach your child, even if your own habits aren’t yet perfect. After all, there’s no better way to learn than by teaching. On the other hand, if you’re among those who know a good deal about investing and other money matters, try to be patient while your child learns.