IT IS OUR duty to our children to teach them about Jesus, basic morality, respect, and the appropriate money management skills. The first rule for teaching our children how to manage money is to set a good example. Kids will be watching. If our children see a lack of stewardship on your part, one day we see the same behavior from them. Even small, seemingly insignificant financial habits can set the tone for the future and mothers and fathers really need to teach their kids how to handle money wisely from childhood.

I'm a strong proponent of providing kids as young as possible with their own level of responsibility in earning their own money, saving their money, and spending their money, not yours. The primary purposes for this income is to help them begin to learn how to handle finances.

As children grow older, be careful about setting allowance amounts, as allowances should be enough to look forward to, but not too much that they don't need to find ways to earn money on their own.

Giving to God

There's no reason to hide the fact from your children that you give a percentage of your income to God. Encourage them to do the same with their income, whether it be from a part of their allowance, or from money they earn themselves. Set proper giving habits when they are young, and chances are it will be continued throughout their life.

Train them that this is the Lord's money - it's not ours, as we are only stewards of what He provides. With your encouragement, let them make their own decision as to how much they give. You want them to have that 'cheerful giver' mentality. Be sure your child knows that his money helps the church pay its bills and its pastors and help needy people.

"Train up a child in the way he should go: and when he is old, he will not depart from it." Proverbs 22:6

Saving Money

Just as with tithing, teaching kids to save money is important. Ten percent is a good place to start. Even when they're little teach them to save in a piggy bank. As they get older, they can have their own bank account. They will see a satisfaction in carrying their own bank book, and depositing their savings each week.

If kids want something that is beyond their budget, teach them to save a bit extra until they can afford that item. It will mean much more to them when they've had to earn it from their own money, and chances are that some things they 'think' they want, may not seem to be so important to them later.

Make sure your child knows, when the spending money is gone, it's gone. Don't supplement it. That will defeat the purpose in training our children to understand the value of their money as their need to save. Bailing them out gives the wrong message.

When we teach our children how to plan ahead and save to fulfill their plans, they'll be less prone to emotional, impulse buying. They'll see the results and feel good about themselves and the decisions they have made.

Jesus said, "For where your treasure is, there your heart will be also" (Matthew 6:21) We can get our hearts in the right place by putting our treasures in the right place.

Kids With Credit Cards

There are differing opinions when it comes to credit card use by young people. Of course you know your kids best, and the option is best left up to you. However,the amount of young people with credit cards has soared since 2000. Today, the average college undergraduate is carrying a credit card balance of about $3,000! It's my opinion, that the ease with which a credit card is acquired, and the 'buy now - pay later' mentality is subtly thrust on our children. Not to mention the peer pressure to have their own credit card.

If you opt to allow your kids to use a credit card, you must make several things clear to them.

What is the card used for? You must establish clear guidelines as to what the card is used for, and what is not allowed. Use the credit card only for budgeted items.

Discuss penalty charges. Review the card application and be sure they know exactly what the terms are. And above all, be sure to impress on them that the balance is to be paid on time, without interest penalty.

Set a spending limit. Lay out a reasonable budget, and set a credit limit. A high percentage of college students are carrying up to four credit cards. More than one is not necessary, and only leads to further problems.

Be firm. Be sure they know, that if the terms that you set with them are not kept, the card will be destroyed. You should keep in mind that with a co-signed card, any outstanding debt, late payments or defaults will show up on your credit report. For that reason, you'll want to make sure that all the paperwork comes to you.

We need to teach children that the Bible is our guide and that God's principles are the ones to follow. If we keep silent, advertising and the media will become our children's financial teachers. And our level of godliness is no guarantee that our children will follow in our footsteps.