As your children grow up they will look to you for guidance and will even mimic the way that you use your money.  If you are an impulsive spender, if you are a scrooge, or even if you are somewhere in between chances are your children will be the same later in life.

It is never too early or too late to educate your children on the value of money.  Here are some ideas for you to consider:

• If you give your children pocket money, they will appreciate it and the things that they buy with it if they have to earn their cash rather than just getting whatever they want.  No matter how young your children are they can still be given simple tasks to do, such as making their bed, tidying their toys away or helping out in the garden. 

• Once you have established how they earn their money, discuss how they intend to use their new found wealth.  Do they want to save for a new toy, a new CD, a present for someone, or just put it in their piggy bank? 

• The endless nagging of a child that wants something can weigh you down, especially if you can not afford what they want.  Don’t go into debt to make your child happy as you could well live with this decision for what could be a very long time.  If you can not afford it, have an honest discussion with them – in terms they will understand.

• Look at ways of compromising on their expectations and setting new ones. For example, if they save for half of the desired object then you could pay for the other half, perhaps as a birthday or Christmas present.

• As your children become teenagers, perhaps you can help them to get a part time job that does not interfere with school.  This will teach them the importance of money and how money is not easy to come by. 

And later in life……

If your children are grown up and are working but are still living at home it is acceptable for you to expect a contribution towards food and household costs.  Not only will this help you with your bills, it will also prepare them for independent living and teach them good budgeting habits.  Even with a small contribution to your family expenses they will still be getting a bargain!

As always, if you would like to share ideas on how you teach your children that money doesn’t grow on trees, feel free to post your ideas on our forum http://boards.msn.com/UKMoneyboards/board.aspx?BoardID=1233