Teaching children proper money-management skills cannot be underestimated. A lot of parents focus on helping their children with math homework and bedtime reading, but fail to give them the much needed skills we all use to control our money. There are things we can do to influence our children and help them make proper decisions regarding their finances as they grow.

Giving your children an allowance is an excellent way to begin teaching them the basics of money. To instill the concept of work, one can attach chores or light responsibilities to this money at a young age. Make your expectations clear and, if they can read, post these requirements on the fridge or a bulletin board.

When your children are ready to spend their hard-earned money. Take them to the store and help them pick out a new toy or whatever it is they desire. Take your time and ask them to explain the differences between toys. Have them discuss why certain toys are more expensive than others and whether or not this extra expense is worthwhile. Carefully examining their purchases before making them will encourage them to think about their options before they make a purchase.

Another way to teach children how to be responsible with money is to take them along on a grocery shopping trip. Make a list of the items to buy with your child before you leave. Take a long a calculator and explain your budget to your child. Make it into a game to see who can find the cheapest item of what you need.

A little extra time spent can make your children much more aware of their actions with money. Teaching your children early on to appreciate money will make a big difference in their lives later on. They will suffer from less debt and anxiety about money than their peers and they will be able to make better financial decisions for themselves and their families.