In the past, not a lot of parents discussed money with their children. But with generations of children growing to be totally inept at managing their finances, parents are realizing that financial management should be taught at home and as early as possible.

Here are some of the things parents can do to teach their children about financial management:

• Implement an allowance system- Children can be given a small allowance that they can use to learn about managing money.  The allowance should be given at a regular schedule once a week. You can then use the opportunity to show your children how the small amounts they receive each week can grow into a good amount. Buy your child a coin bank where he/she can store all or part of his/her allowance every week. 
• Tie money to chores- as the kids get older, you can also give them additional money aside from the allowance that receive by paying them for the extra chores they do at home.  If your child is assigned to take out the trash on certain days but volunteers to do them on days when he or she is not assigned to do so, reward the child with extra money. This will teach your child that money can be earned by performing tasks.
• Once you child learns to count money, teach your child about budgeting- if you plan to go to a store within the week, you can tell your child that he can spend part of his allowance in the store. Ask your child how much he wants to spend and tell him to make a list. Check the list and assign prices to the items and discuss with your child the price of each item. If the amount of the items in the list exceeds your child’s budget, explain to him how he will have to buy less of the things he was planning on purchasing.
• Do not provide additional funds- when in the store, tell your child he should stick to his budget. Do not provide additional funds even if your child insists on it. Your child has to learn to spend only the money he has. 
• Walk the talk- your children will learn financial management from you.  You must learn to lead by example especially for teens and older kids.  You can teach children about how you manage your finances by explaining to them the financial choices that you make. 
• Teach your kids tasks related to financial management- Teens can be taught how to write out checks, read credit card bills, balance check books, etc.