December 2006 This is the first installment of a four-part series on Kids & Your Money. This month Debt Matters is looking at how money affects our children under 12. Next month we'll look at teens, then college kids and lastly our adult children. Your Kids & Your Money Give Them What They Really Want This Year — It's Probably Not What You Think The holiday season is a perfect time to reflect on your young children and your finances. Most people probably think a topic like "Your Kids & Your Money" is just a matter of kicking $1 over to the Tooth Fairy now and then. But how we relate to money and our children, and how they relate to money and their parents is significant. Here are some ideas to help instill a healthy perspective on money for the under-12 crowd. Give Yourself a Break Especially at the holidays, parents are prone to inflating the importance of gifts. That's right — parents. Sure, kids want video game systems and remote-controlled cars and will be less-than-subtle about voicing it. But that's only because they HAVE plenty of food, a secure home and supportive parents. Kids who don't have the necessities want them a lot more than anything you can buy at an electronics store. What parents tend to forget is that just because kids have a wish list that exceeds the household budget, doesn't mean the parents haven't done their job. It's natural to want to get your child everything they desire, but that might not even be the best thing. Even young children would do well to understand there are limits. And parents would do well not to beat themselves up if they aren't doling out expensive gifts. There is a time to preserve childhood, but showering them with indulgence isn't the best way. When to Preserve Childhood Married couples often list money problems as the No. 1 issue that can divide them. Financial strain can affect the children too. Here's an area where parents should shelter their kids. For one thing, "money problems" is still very abstract to a child. Secondly, they are powerless to help. Together, fear and powerlessness will add up to anxiety. Here are four tips for keeping childhood free of financial strain: Never argue about money in front of children. Don't let them hear you fretting about bills. Be careful joking about money too. A comment like, "We better pay the power bill before they turn the lights out," or "The IRS won't be happy until we are broke," could create undo fear. Steer clear of saying "We can't afford it," or "We don't have the money." For one thing, it's probably inaccurate. You have the money, you just need to spend it on more important items like groceries and the mortgage. Instead, try "It's too expensive," or "I think we can find a cheaper alternative." Again, it's okay to reveal that there are limits. After all, parents have no problem imposing limits when it comes to safety. But kids need to be kids, and financial worry isn't something they have to experience before adulthood. Sparing them that is a gift worth giving. Your Kids & Your Money Part One Minimizing ID Theft Damage Part Three Two Minute Quiz Balance Transfers What to Do With $10,000 Workin' It Short on Cents Past Issues

Debt Matters is a source of general information about personal finance and is not a substitute for professional financial advice. Circumstances vary from one individual to another and advice in these articles may not be right for everyone. The publisher will not be held liable for any damages incurred by following the advice found in Debt Matters. © Debt Matters; www.debtmattersnews.com; 2005, 2008