Be a good role model. Children model their parents' spending habits. If they see their parents buy the latest and greatest gadgets, trendy brand-name clothes and expensive meals, they will probably do the same. Likewise, they learn to be economical with money if they see their parents seek out sales, pay their bills on time, avoid credit card debt and wait to buy "extras" until there's extra money.

Save and share, too. Saving and sharing are also important aspects of using money wisely. Parents can encourage their children to save a percentage of their income or even match what their kids save. Children will need help from their parents to set realistic savings goals, such as a new bike or a college fund. It's also important for children to learn the value of generosity by sharing a portion of their money with those who are less fortunate. Kids can choose a cause that they want to support and research nonprofit organizations before making their contribution.

Beware of marketing messages. Advertising targets children as young as two years old, which is why it's never too early for children to learn that they can't have everything they want. When children see a toy they just "have to have," parents can remind their children about a toy they wanted that is collecting dust or doesn't work. Parents can also talk to their kids about the ads they see on television or even have them write down what they notice about commercials, such as:

• How did the ad make you feel?
• What did the ad claim the product would do?
• Do you think the product is as good as it looks?
• If you buy the product, how much will you like it six months from now?

Buy the basics first. Unless they are told, children don't know how much it costs for the basic necessities such as rent or mortgage, utilities, transportation, taxes, food and clothes. Parents can show children how "needs" are paid for first and "wants," are second priorities. Sometimes kids will have to wait until next year for the family trip to Florida or a new bike, which teaches them about delayed gratification and saving for a goal.

Include kids on shopping trips. Kids can learn to make wise purchases by shopping with their parents, whether it's for groceries or a car. They learn how to research what's available, negotiate a better deal and comparison shop for the best price and quality. Adults can also use receipts to show their children how much they save by buying things on sale, using coupons and buying off-brand items.

"Practice" spending. To give children the experience, parents can require them to use their own money for certain items, such as entertainment. For example, older children could pay for movies and CDs. When it's their own money at stake, kids learn that they have to limit their entertainment costs and sometimes do fun things that cost nothing.

Open a joint checking account. For teenagers who have a job, checking accounts can be worthwhile. With their own account, children learn how to balance a checkbook and how much a bounced check costs. These are important lessons to learn before teens hit 18 and are out on their own or in college. Many banks require parents to be joint account holders with their children.

Teach credit lessons. Once a teenager turns 18, they can have their own credit card without their parents' permission or knowledge. Parents can't assume that their children know about interest rates and the cost of credit. That's why it's important for parents to talk to their children about how credit is a convenience, not a license to spend money they don't have. Parents with teenagers approaching 18 years old may want to consider opening a joint credit card account to give their kids some experience with plastic.

Set limits. Parents often struggle with how much money to spend on brand-name items for their children. One way to compromise is for parents to set a reasonable limit on what they'll pay for each clothing item and require kids to pay the difference if they want something more expensive. This teaches children the value of money and the benefits of shopping for less expensive alternatives. Another option is to allow children to buy one brand-name outfit, preferably on sale, and require less expensive purchases for remaining items. Parents should also remember that they're not being bad parents when they say "no," to their kids.