by Jonquil Johnson

Created on: April 19, 2009   Last Updated: May 08, 2009

Turning 18 is one of the most major milestones in a person's life. Becoming a legal adult gives you the right to do whatever you want. For many new found independents, this includes destroying their credit by making several large and unnecessary purchases.Parents talk to their children about everything from sex to drugs, but rarely does money management come up in topic. By the time they are ready to leave the nest, "living large" is the only objective in vision.Teaching children while they are young to manage money is a valuable lesson that will stay with them into adulthood. Living in a financially responsible environment prepares your children for a more stable future.

Children imitate what they see and not what they are told the majority of the time. Setting responsible financial examples everyday will set the tone for the children's learning experience. Parents should make sure that their children see that they make sacrifices for the future. Ladies, cut back on all of those "necessary" manicures and pedicures. Your children will understand that it is not necessary to have a new video game when it releases. Cutting back on eating out and cooking more also shows children the difference between needs and wants. Burger King and Red Robin should not be part of a daily routine.

Although setting an example is always best, talking to your children regularly also makes a difference. One important lesson is that almost everything in your adult life depends on your credit score. Unless you are born into wealth, you will need to have an acceptable credit score to get a house, car, and some jobs. Explain to your children that the decisions that they make early on will affect their future. Credit cards are not a necessity. Make it a personal rule to not purchase anything that you do not have the cash for at that time. Choosing to "buy now, pay later" can start a vicious cycle of debt and borrowing that is almost impossible to get out of.

If your children receive an allowance, this is the first step towards teaching financial responsibility. They should be given the allowance with the understanding that a portion of it must be saved. Once a certain amount is saved, start a bank account for your child. Help them to understand that the money that they put back now could possibly go towards their first car. Also, allow them to spend a portion of their saved funds to get some of the things that they want. They are likely to feel better knowing that they saved for a big purchase and did it on their own. Children expect their parents to provide for them totally and often think that "money grows on trees". While it is our responsibility to provide the best for our children, helping them secure a financial future is one of the best gifts ever.

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