Today, everything from Gameboys to Sony Playstation to Xbox machines are now common in most homes. Though affordable, should our children be able to buy anything they want? This is a question I get from most parents. But what parents fail to understand is, when they try to keep up with what their neighbors have, it puts a major strain on the family's finances. Our children are now copying our ways by trying to keep up with us!

We need to be sure to keep our finances in order and show our children good fiscal responsibility. Money is a precious resource that we work hard for and should not be taken lightly. The average person has a revolving credit debt of over $8500 and bankruptcies are on the rise. What we do as family money managers goes a long way in teaching our children how to manage their own money matters.

Financial mismanagement inside families is a growing problem that can be devastating to children. Losing a home to foreclosure, having to move because of bad debts, learning to do without many of the luxuries they had before can lead to depression, lack of self-confidence, and unresolved feelings toward their parents for putting them into that position.

What is even more painful for children, is how parents isolate them from the reasons why things happened. Children need to understand that it is not their fault and that the parents made the mistakes. Parents must sit their children down and explain how mismanaging finances can put families in financial peril. If children are left to wonder, they will experience the same mistakes when they become adults.

This can be avoided at all costs if parents take the time to learn basic financial management skills. Here are some things you should be doing right now to keep your children from having to go out into life without an understanding of what it takes to financially succeed in this world.

1- Get kids involved in your life!

Show them what you are buying, what things cost in real value terms, and why you need them. Explain the differences between wants and needs and how to manage their money the right way.

2-Get your children involved in making small financial decisions.

This is a good way to show them what can happen if they make the wrong choices in life and what the consequences will be.

3- Make them aware of what money can and cannot do.

Money can make people do strange things. It has been written that it is the root of all evil but it can help those in need. A good example of this is the work that charities do. Money in itself is not bad. Only what people do with it that can turn bad.

4- Get your children involved with your shopping.

Have your children start cutting out coupons and filing them away for you. Use this as a time to teach math and language skills (especially if they are young), and allow them to help you shop by retrieving items on your list. Giving children responsibilities teaches them discipline, which is sorely lacking in our youth.

5- Don't just say no when they ask for something.

Explain to them the reasons behind why they cannot have the item, whether for financial, or other reasons, and show them alternatives that will give them confidence to make proper decisions later in life.

Children are a lot smarter than we give them credit for and they understand things better if you involve them. Don't talk down to them. Let them have a say in their lives. You will see that, we as parents, can change our destructive financial habits, and give our children something they need right now... the financial wisdom to carry throughout their lives.