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How are you handling your money? Good, bad? Children learn from their parents. Most likely, they will handle money like you do. They watch everything we do. So if you answered “bad,” then you’ve got some work to do with kids and money.

Our children learn by example. Let’s give them credit, they are smarter than you think.

If you do the following things, then you are doing a good job teaching your kids about money.

1. Live on a budget: If you spend your money following a monthly written plan, then you avoid impulse purchases. If your children see that you spend more than you make, then they will catch on and have no concept that money is finite.
2. Avoid impulse buying: Showing restraint in a grocery or retail store is a great way to lead by example. If you say yes to purchases that are not in the budget, then your children will learn to do the same.
3. Teach principles: There are three purposes for money; give, save, and spend. Put your children on commission for doing chores around the house. Based on what they do, show them that if you work you get paid and when you get paid, you should budget your money for giving, saving, and spending. Emphasize the GIVING.

Lead by example, that is your job as a parent. You will thank me later when you don’t have thirty year old children still leaving with you.

Question: Are you teaching your children on how to manage money? Are you managing your money well?