The modern world can be an incredibly tough place to raise financially responsible children. Today's kids live lives marked by material desires and targeted marketing; they regularly see their parents commit financial mistakes, and with their needs and most of their desires met, they often don't see any reason to be concerned about money. It's a parent's job to overcome these challenges by imparting financial smarts, starting early on so that kids grow up with an understanding of and respect for money and investments. The tips below can help you teach your children to be financially responsible – which will significantly increase the odds of them becoming financially independent adults.

Start Early

From the time your children are very young, you can begin teaching them about responsibility. Even very young children can put away their toys or help set the table for dinner; these "chores" show them that work is a part of life and that everyone must pull his or her own weight.

As kids get older, they can and should take on greater responsibilities. Teenagers of 16 or 17, for example, should be encouraged to get jobs; they should also begin saving money (if they haven’t already) as well as being expected to pay for their own material wants.  Managing their own hard earned money can teach a great lesson.

Set Clear Expectations

You should be very clear with your children about your expectations for them. This includes doing household chores and being responsible with schoolwork, but it also includes your expectation that they are responsible for their finances.

For example, if your kids will be financially on their own through college or after graduation, be sure they know that years in advance. This will limit any surprises and keep them thinking about how to support themselves in the future – by getting jobs and saving money now.

Educate

These days, it’s very common for financial education to be sorely lacking in many schools and homes. Don't send your children into the real world with little to no knowledge of how to handle money. Instead, discuss this with them often. If you were raised with the idea that money was a taboo subject, try to get over this – your children need you to teach them to be independent.

Teach your children specific things about handling money, such as saving some of each paycheck, even when they’re young. Teach them to balance a checkbook (or how to keep up with their online banking) as well as budgeting skills and smart spending habits. Too many young adults are left to figure these things out on their own, and mistakes are better made when they’re young and still have the safety net of living at home.  Or ….mistakes are better made when they are young enough to have chance to learn from the mistake and make the right decision the next time.

Provide Help with Schooling

When it's time for college, there are many ways parents can help kids get the best possible start in "adult" life. First of all, do whatever you can to help them graduate debt-free. Student loan debt can be a major problem for graduates trying to make it on their own. Suggest that they attend public, in-state universities to save money. Also, help them research grants and scholarships that they may qualify for – every little bit helps. And if you can, start funding a college savings plan before your kids reach high school to alleviate some of the financial strain for both you and your children.

Establishing smart spending habits when your children are young will help them throughout the rest of their lives. Discuss their plans and goals with them well before they reach the age that they come into an inheritance, and if you have doubts about their ability to be responsible with money, creating an irrevocable trust that guides smart spending habits is a great way to protect them.

About Caldwell Trust Company

Caldwell Trust Company is an independent trust company with offices in Venice and Sarasota, Florida. Established in 1993, the firm currently manages over $800 million in assets for clients throughout the United States. The company offers a full range of fiduciary services to individuals, including services as trustee, custodian, investment adviser, financial manager and personal representative. Additionally, Caldwell manages 401(k) and 403(b) qualified retirement plans for employers.