by Aeryka Rae

Created on: April 18, 2009   Last Updated: April 21, 2009

There are no two ways about it...teaching young children to be money smart is up there along with teaching them sex education. These things should be taught at home. Most children become 'street smart' at an early age as it is. When they learn important 'life lessons' at home, they have something they can reach for when circumstances arise.

It's high-time for parents to train up their children, and stop expecting someone else to do it. They learn enough on their own as it is. Teaching them good habits (where money is concerned) can only be accomplished through setting good examples, as well as communicating those examples on a consistent basis.

Children are intelligent human beings. They are quick learners; and if parents teach them well in being money smart, they are less likely to become a slave to it. Parents who raise their children responsibly are less likely to find themselves continuously bailing them out of situations when they're on their own. Teaching them to be money smart is just one of the responsibilities every parent should be mindful of when they bring children into the world.

Teaching them what money IS, and what it is NOT is good for starters. It should never be taken for granted.

* Money is a medium of exchange; a measure of value, or means of payment. It can MAKE an individual, if it's handled properly, or it can BREAK them if mis-managed.

Children should be taught (at an early age) that money is neither good, nor evil. However, the LOVE of it is the ROOT of ALL evil. It is the kind of evil that has us in the economic crisis we're in to begin with. Therefore, money is something that needs to be managed well in order for the economy, and our households to function well. When the economy functions well, we all stand a chance of functioning well if we all did our part in becoming money smart.

It is wise for parents to PRACTICE WHAT THEY PREACH, as well as teach their children to:

- Spend less, and save more. Learn the difference between WANTING something, and having a true NEED for something. If we can live without the things we WANT...we don't have a NEED for them, which saves us in the long run.

- Value what a dollar can do if they save enough of them; and teach them the concept of paying themselves interest on every dollar taken from their savings that is not replaced over a period of time. They can learn that simple aspect of the savings and loan industry.

- Appreciate the earned dollar, and how taxes will affect their hard earned income. It is

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