The biggest shopping season of the year is just around the corner. As you approach this time of year, do you ever stop and think about how your children are affected by your spending habits? What are you teaching them about money management?

I've thought about the impression my spending habits have made on my children. I hope to set a good example by budgeting, watching for sales and spending less than we earn. As I thought about this, I've come up with a few ideas that you might be able to use in teaching your children how to manage money.

1. Try not to use credit cards in front of your children. If at all possible, credit cards should be used for emergency purposes only and your children should know this. The "buy now, pay later" concept is not a good thing for your children to learn. It's better for them to learn to work hard and earn the money first before spending it. This could avoid debt problems for them in the future.

2. Use your children's allowance to teach them how to manage money. Set up their own "bank account" at home. Use pretend money until they need the real thing to make a purchase. Put it in a shoe box (the bank) and have them record each deposit and withdrawal on a sheet of paper. Have them write a "check" to the bank when they want to buy something so they can learn the concept of check writing.

3. After you've set up their "bank account" show them how to budget. Have them make a list of items they need such as new socks, toothbrush etc. Then have them list the items they want. Write their "account balance" at the top of the page. Tell them to choose an item from the "need" list and then if they have enough money they can choose one from the "want" list. They may only have enough to buy that first item or they may have enough for more. Just make sure they realize that important things are paid for first.

4. Teach your children to save. Start a savings account (a real one this time :o) for each of your children and encourage them to put part of their allowance in each month. This money should be left in savings until they are an adult.

5. Teach your children to take care of what they have and to be grateful for it. Watch how this will happen if the child has earned their own money and paid for their own things. Show them that the more often they have to replace clothing or toys, the more their money is spent.

6. Show them how to be conservative. Teach them that recycling is important and that it avoids waste. Show them how to be energy efficient buy turning off lights when leaving a room, deciding what they want before they go to the refrigerator and setting a time limit on their showers. Let them know that little things like that can add up to big savings.

Hopefully these ideas can give you a start on how to teach your child to manage money. I've also found an excellent online resource at Moneyinstructor.com Just remember the best way to teach your children is through example.

Shannon is the webmaster of a scrappin' website that offers premade scrapbook pages that tell you interesting information about the day you were born.  Visit her site at http://www.scrapits.com