Kids learn well from examples

As a parent you will most probably be in one of two categories. Either you're in a mess financially so you feel you are not qualified to teach your child about money, or you manage your finances efficiently but don't quite know how to pass those skills on to your child.
Without a doubt, discussing family financial affairs is a subject that many parents shy away from and could be in the same class as discussing sex - discussed only when absolutely necessary, and generally too late.
To help put your child on the right financial path it is therefore vital that you "build a bridge and get over it" and include your child in the financial life of your family. Sometimes the best way to teach your child is when they think they are not learning.
Show your children how to pay bills online or explain your last power bill and how it is worked out. Show them your last bank statement and read it to them as a story of what has happened in your financial life over the past month.
Another great way is to talk to your children about how much you spend on groceries each week.
Withdraw an agreed amount of cash to do your grocery shopping and get your child to help you spend it. If the total comes to more than the cash you have then you need to be prepared to put some items back to demonstrate that you can't spend more than you have.
Encourage your child to play detective by getting them to check every item off against the docket when you get home and offer a prize if they find an error.
By taking your child back to the store with your docket and getting a refund you will reinforce that making more money isn't always the answer but that what you do with what you earn is what matters.
Children need to learn how money works at an early age so they can make informed choices as they grow older. You are the most important role model in your child's life for this.
If your parents didn't teach you about money, or you realise you haven't handled what money you have had very well, don't despair. Use it as a lesson and not an excuse.
Make some changes and don't let mistakes of the past become habits of the future for your next generation.
Sylvia Bowden is the author of the book Parents: How to Stop Your Kids From Going Broke!, written to help parents teach their children money and life skills. Her book is available from her website www.silbo.co.nz and some Paper Plus stores.