Critique marketing messages. Advertising has a big influence on children's attitudes toward money and possessions. Advertising targets children as young as 18 months, so it's never too early to think about the effects of commercialism. Parents who want to curb their children's exposure to marketing messages can limit television and surfing the Internet. Better yet, parents can talk with their kids about the ads they see. Conversation starters include:

• How did the ad make you feel?
• What words did the ad use to describe the product?
• Why do you think the ad used those pictures, props or scenery?
• Do you think the product is as good as it looks?
• If you buy the product, do you think you will like it six months from now?

Set a good example. Children learn most of their money habits by watching their parents. Kids typically mimic their parents' financial habits, whether they are "savers" or "spenders." Think about the money-related activities your children observe, such as getting cash from the ATM, paying bills and shopping. Then talk to your kids about these activities, including why you do what you do and how money affects day-to-day decision-making.

Talk about values and money. We may not always realize it, but our financial decisions are based on our values. Children learn a lot by hearing their parents talk about their financial situation and by observing how their parents deal with money and financial pressure. Parents will want to consider which values most influence their finances, and then think about the best way to share those values with their kids.

Teach wants vs. needs. When children ask why the family can't go on a cruise to the Bahamas, it's helpful for them to understand what the family considers to be "wants" vs. "needs." Some families spend their money on "needs" first and "wants" second. What's important is that children learn to understand the difference between wants and needs. Parents can help their children tell the difference between wants and needs by giving examples and being open about why the family does--and doesn't--spend money on certain things.

Respond to peer pressure. There's no easy solution to the peer pressure children experience to wear the "right" clothes or have the latest CDs. Although it's difficult for parents to set spending limits, parents who do will likely see lifelong positive effects on their children's financial habits. As with other parts of life, moderation is a reasonable goal for parents when helping kids understand peer pressure. It's also helpful for parents to talk to their kids about how peer pressure influences their financial decisions and the consequences of those decisions.

Instill money management skills. Sometimes it's easier to give children money every time they ask for it rather than help them develop money management skills. But shelling out bucks on demand robs children of important early experiences with money. The alternative is giving an allowance, which provides parents "teachable moments" as children experiment with their own money. Parents can set guidelines for how much children save, spend and donate to charitable organizations. It's important to make money management enjoyable for kids by helping them set a savings goal, such as buying a toy, or by matching what they save and share.

Share with those in need. Charitable giving is worthwhile for children because it teaches the value of generosity and helps kids appreciate what they have. Parents can motivate their children to share a portion of their money with people who are less fortunate by matching donations--even if it's one donation per year. Children are more excited about sharing their money when they get to choose the cause they want to support. Parents of younger children can help research potential recipients for their donations.

Allow for mistakes. Although it's not easy for parents to watch, sometimes kids make mistakes that cost money. However, it's better to learn from mistakes as a child rather than learning as an adult when the stakes are higher. As long as financial mistakes happen only occasionally, parents need not become overly concerned. If a 10-year-old buys a toy that immediately breaks, she learns a valuable lesson for relatively little money. It's also common for kids to make an occasional bigger mistake, such as breaking a window. By being understanding about infrequent accidents and helping kids make amends, parents avoid sending the message that material objects are the most important.

Investment product transactions conducted through Thrivent Investment Management, Inc., a wholly owned subsidiary of Thrivent Financial for Lutherans.