We all know that money is an important part of life. It gives people opportunities, independence, confidence, feelings of security, and ways to improve the lives of others. The question is… how do you help your children understand the importance of—and more importantly—become excited and committed to— healthy money habits for their lifetimes?

Everyone’s talking about the disturbing trends like the research showing that today’s college students are graduating with more credit card debt than ever before, meaning that many of them are starting their adult years by making unwise decisions that could negatively affect their futures. Countless surveys show that not only do today’s adults fail to show wise money habits, but we are failing to provide basic financial education to the next generation.

Along comes an award-winning author whose newest book, The Nickels, Dimes, and Dollars Book: A Wise Kid’s Guide to Money Matters, focuses on inspiring children to learn how to handle money. Ellen Sabin believes that teaching children about healthy financial habits starts at a young age with helping them realize their POWER to manage money as they make thoughtful choices around spending, sharing, saving, learning and growing money.

Messages about being financial literacy often offer lists of “to-do’s” that can make even the most pliant of us feel like we are being preached to. Ellen offers tips that help adults engage children in learning important life lessons that will have a positive impact on their character, well-being and financial futures!

1. Why Should They Care?
For children, concepts like saving for college, credit card dept, or financial pressures are very abstract concepts and certainly not compelling motivators for action. To help children understand the importance of wise money choices, encourage them to make a list of things that they think the family NEEDS. Ask them to pretend they are a parent and will make spending decisions for their family. What do they think are the top 10 things that they would spend money on for their family? (Perhaps clothes, health care, a place to live)? Next, ask them to make a list of things they WANT (maybe an ipod, new clothes, a computer game)? Helping them explore things that money is used to buy will give them a context to appreciate why it’s important to learn how save and spend money wisely.

2. Show and Tell!
In all too many households, children either don’t hear about money matters or when they do, it’s in a negative context. Introducing children to money –in a healthy way— at an early age will only be advantageous for their future comfort and confidence with money matters. Let you child use money as they learn to add and subtract (and you will be teaching them how to make change and feel comfortable using money); talk to your children about what you are saving money to buy so that they can hear the ways you set goals and prioritize; discuss your charitable giving over dinner and help your children learn that money can be used to help make the world a better place. There are lots of other money-related topics around spending, saving, sharing, earning, and growing money that you can “SHOW and TELL about!”

3. Inspire a Work Ethic
Kids enjoy making their own money and you can help instill an entrepreneurial spirit, a strong work ethic, and greater understanding about earning money that will serve them well. Help your child come up with a list of kid-friendly ways to make money and then help them make a plan and execute their ideas! Once they’ve earned money from their project, be sure to ask them to consider what they will do with their earned money (spend some? Save some? Donate some?). Ask them to talk about what they enjoyed about their work and as they respond, point out that while work might be hard some times, it also had many rewards, beyond just getting money.

4. Capture the Moment
The Nickels, Dimes, and Dollars Book allows kids to create a journal and scrapbook that highlights things they learn about money matters. Allowing children to capture these ideas and co-author their own book, makes the experience more rewarding and empowering, and makes an impact that lasts for years to come.

Ellen’s book series also offers value to schools—where free teachers’ guides offer lesson plans to integrate financial education into classroom use. Organizations, community leaders and corporations focused on promoting financial literacy in communities can customized versions of her books for cause-marketing and community outreach value.

The Nickels, Dimes, and Dollars Book has many more activities to educate and inspire children to choose wise money habits. Copies of The Nickels, Dimes, and Dollars Book can be purchased online at [wateringcanpress.com] and [barnesandnoble.com]. Other character-building and inspiring books by Ellen Sabin can be found at [wateringcanpress.com].