Here are 5 simple essential guidelines to help you start your training:

1. Set a good example.

Be a good example to your kids because our actions speak louder. We might be teaching them wise money habits, but what we show them is contrary to what we tell them. How can we instill in their minds the best financial lessons they need to know if we allow our youngsters to see us overindulge in the most famous signature clothes, bags and shoes or the latest gadget in town? We should convince them by being a good role model. Prove that just like them, you also don’t have everything that you want. Do not make “lack of quality time” an excuse for allowing them to splurge at the mall. It will only confuse them.

2. Give them allowance for budgeting.

Provide them with their allowance that is good for a week or a month depending on your decision. The important thing is, you tell them that they should budget it to make it last to the specified time of your choice. Do not bail them out if they overspend because this will be a good time for them to learn the consequences for making un-allocated purchases and be a more responsible spender next time.

3. Teach them the difference between a “WANT” and a “NEED”.

Explain to your kids the difference between a “want” and a “need”. They should clearly differentiate them. Always give reasons for prioritizing to buy a “need” first over a “want.” Or ask them what is their basis for purchasing and guiding them.

4. Discuss the advantages of saving rather than spending.

Saving is always much better than spending that’s why encourage your youngster to spend less. Never allow neglecting the importance of being a cautious saver. For example, introducing to them the use of a piggy bank. You can start by rewarding them with every amount they could save out of the allowance you gave, agree to put an equal amount to their piggy bank. Saving will be much more convincing to them because they were able to witness how their money can grow. This also gives them an idea about interest and prepares them for opening their own savings bank account in the future when they are ready. It is always fulfilling to watch your money grow over time. If they want something to buy whether a new toy, a gadget, sports item or shoes, teach them to set a saving goal and help them keep track of it. If you can afford to buy your kids what they want, you can agree to pay half the price of the item but the rest should be taken care of by them.

5. Teach them the value of earning and warning them about debts.

Aside from their usual allowance, give them a chance to earn. Start with simple things like asking them out of what they usually do at home. The tendency of giving them tasks like household chores or running an errand and paying them, is that they might forget the value of helping without expecting anything in return. Furthermore, warn them about unmanaged debts that can be very disastrous in the future if left unsettled.