TRAINING YOUR KIDS IN MONEY MANAGEMENT.

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Crippling consumer debt and bankruptcy now are common everyday occurrences in the U.S. That makes it all the more surprising that children do not get money management training in school. Until that changes, it is up to parents, advises the Financial Planning Association, Denver, Colo. The back-to-school season is a good time to talk to your kids about money--and get specific about the financial values you want to teach them.

Here are some initial steps:

Determine the right allowance. As early as kindergarten or first grade, youngsters are going to have to start paying for things, even if it merely is one container of milk a day You need to understand how much money children require for basic school expenses. Decide whether they have to to earn an amount for extras-toys and candy, for instance--then stress why working for treats is important.

Take a look in the mirror. Do you drive a bigger car than you can afford? Every time you go to the store, do you pull out a credit card to pay? Do you and your spouse fight openly about money at home? Your child observes all of this. Children learn all-important lessons by example--make sure the money messages being sent are the right ones.

Buy a piggy bank. Young children need this tried-and-true symbol of saving. They should know there is a place to put pocket change they do not spend, and they are free to tap it only to accomplish a goal that the both of you discuss. This is not about buying stuff; it is about setting goals.

Do not miss an opportunity for a lesson. Watch your child's behavior--see what he or she wants to buy Ask them how they plan to pay for things. This is your window on whether your money messages are getting through. "I want and "1 need" always are opportunities for you to teach.

Have them open a savings account. Be sure they keep their bankbook or monthly statements in a safe place, and that they deposit funds at least once a month to get in the habit.

Handle money mistakes carefully. Children are going to make mistakes with money--they will lose it, spend it on the wrong things, or possibly give it away to others. Youngsters need to be taught sense and caution with money but not fear.

Adjust the conversation as they age. As kids become teens, they want more autonomy with their spending. You need to match that trust with accountability. If you deposit money in an account for them, talk about what extras you are willing to pay for and make those agreements ironclad.

Talk about college early. Even if you plan to pay your children's entire tuition, talk about the financial Investment college represents long before they go. This is a great time to discuss what the most important things in life really cost.

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