Teach Your Children about Money Tip #5

Tip #5 for teaching your child about money involves teaching them how to bail themselves out of financial jams. It may be hard to resist the urge to help bailout your child, but when you don't always come to their rescue, your child learns to save themselves. So if your child wants to buy an expensive toy or item, have them take a good look at the amount of money they have in their own account. If they do not have enough money to buy the item then do not give a cash advance to your child so they can buy the item. Instead, brainstorm with your child to see what ways they may be able to come up with the extra money they want to buy the item.

For college aged children that run up their credit cards, do not offer to pay them off. Again, spend some time talking with your child to see how she can come up with the extra money needed to pay off the credit card bill. These types of lessons teach your children that they have to work for their money and manage their debt themselves because there isn't always going to be somebody (like Mom and Dad) to bail them out all the time.