From budgeting to debt management skills, kids need to learn the basics of finances at an early age. But in our media-driven world, you never know what kind of financial influence could be out there. That’s why as a parent, it’s extremely important to teach your kids the financial knowledge they will need to be successful adults. Here are a few helpful tips for parents.

 1. Practice smart finance management yourself. The old saying “do as I say, not as I do” should never be in your vocabulary when it comes to finances. Keep in mind that not only will your kids listen to you when you talk about finances, but they will also watch your every move.

 2. Make sure your kids know the difference between what you ‘need” and what you “want.” Explain to them that though your last paycheck my look like a lot of money, there are various bills you will need to pay like electric bills or the mortgage before you can start putting money towards things you want such as video games or nice dinners at a restaurant.

 3. Involve your children in more than just the act of spending money. Make sure they are part of the saving process as well as investments so they can learn the importance of both.

 4. Encourage smart spending habits at a young age. If you and your kids have an allowance agreement, don’t just hand them the money once a week and let them decide on their own how to spend it. Instead, talk to them about smart spending and investments so they are able to make better spending decisions.