From my earliest days of childhood, I always remember earning my own money. Whether it entailed earning an allowance by doing chores around the house or getting a part-time job as a teenager, my parents always made sure I knew the importance of money. My family was not well off by any means, so if I wanted something special, like a new pair of jeans or a pretty piece of jewelry, I was expected to pay for it myself. There were times when I thought this to be an unfair arrangement. I often felt envious of my friends who would just ask their mom or dad for an extra $20, just because. But in hindsight, I realize that my parents were giving me a greater gift than money. They were giving me the gift of good money management skills. A gift that has served me well throughout my life and a gift I plan to pass on to my children. The following are some guidelines that any parent can follow to help their own children become good money managers.

Start teaching them while their young

For the best results, financial issues should be discussed with your children as soon as they are able to understand the whole concept of money, about 3 or 4 years of age. This is the age where they can start to identify coins and understand their worth. You can even get them their first piggy bank so they have a special place to keep any money they may have. Explain to your children that “money doesn’t grow on trees” and stress to them the difference between saving money for things that we need and saving money for the things that we want. It’s important to teach these lessons at a young age because even the youngest child will tease to have mommy or daddy buy them a shiny new toy. Just remember that commercial marketers are no dummies and advertising that specifically targets kids is especially lucrative.

Giving an allowance

Giving your child an allowance is one of the best methods you can use for teaching financial responsibility. Once a child is able to start earning their own money you can start to really drive home lessons in saving, spending and planning. The best time to start implementing an allowance is once children have started school. It’s entirely up to you as the parent to decide how much your child should get and what they will need to do to earn that money. It’s best to sit down with your child and together come up with a reasonable list of household jobs that need to get done in order for them to earn their allowance. To keep track of what your child is responsible for, create a "chore chart" to hang on the refrigerator. Try to avoid giving your child money for ordinary events like brushing their teeth everyday or having good manners at the dinner table. These are things your child should be doing anyway. Don’t set up a model where your child won’t do anything unless they are financially rewarded.

Set up a savings account

If your child is consistently earning an allowance, you may want to help them open up a savings account. This will help them to become familiar with simple banking transactions and also give them a place to earn interest on any money they receive. If your child is a good saver, you may want to eventually discuss with them the option of a CD or money market account. If your child is a little older, take the time to sit down with a banking representative and have them discuss with you and your child the different saving options the bank has to offer.

Help kids establish a savings plan

If there’s something you know your child wants to buy but they don’t have enough money, help them set a goal to earn it. You may want to build in incentives for them to earn extra money by doing extra work around the house or, for bigger purchases, offer to match whatever money they raise. You can also encourage your child to suggest other ways they might make some extra money. They might be more entrepreneurial than you think.

Let kids make their own mistakes

Kids are impulsive by nature. Often, they’ll want to buy the first thing they see. It never occurs to them that the brand new pair of sneakers they're in love with in one store are 20% off in the store down the street. Talk to your kids about trying to find the best deal for their money. However, if your child still has their heart set on buying an item you know is no bargain, bite your tongue and let them do it anyway. Part of the learning process includes learning from our mistakes. As hard as it is to watch your kids make a bad move, it’s often the only way they get to learn that there are consequences to their actions. The important thing to remember is to not bail them out with more money when they have made the wrong decision. Your child may soon regret buying those pricey sneakers when he realizes he has no money left to go to the movies with his friends.

Teach generosity

It’s important for children to realize that not everyone is financially comfortable. It’s always a great idea to involve your children in such charitable activities as clothing drives, collecting canned foods, or a Toys for Tots program. You may also want to encourage your child to donate a small portion of his or her allowance to the charity of their choice. Bringing about an awareness for your child that not everyone is as fortunate as they are will help them appreciate the money and other material things they possess.

Be a good role model

This may sound obvious, but it’s difficult to teach your kids to save for a rainy day when you yourself are always spending money at the drop of a hat. Children are very perceptive and watch no one else closer than they watch their parents. Remember this the next time you overextend your credit or write a bad check.

Teaching financial responsibility to kids isn’t always easy. As parents it’s hard for us to deny our children of the things we know they really want. But if we just keep in mind that by making our children work for things instead of handing them everything on a silver platter, we are giving them a gift that will last a lifetime