If I get one question consistently, it’s this one, “What’s the best way to teach my kids about money?” I have a simple answer…Do whatever you can to make it their idea. I call this using “Teachable Moments” to introduce financial education, or anything else for that matter, to your kids.

Here is a section from The Ultimate Allowance to help you with those teachable moments.

As adults and parents, most of us realize that, in life, there are teachable moments when we are open and receptive to relevant information, and there are moments when it doesn’t matter who is attempting to teach us, we are simply not willing, or able, to take in the information.

Children are no different. You probably know that sometimes it’s just flat out impossible to get your kids to learn something (or even listen) as long as you are the one who is doing the teaching. But have a friend introduce an idea or concept to them and they are open and receptive to the information.

For any information, it’s critical that you introduce it at the best possible moment. First, find a time when it makes sense to bring up the subject of money. Right after they’ve had a fight with a friend or lost a valuable toy or broken a vase is not that time!

I’ve heard it said that people don’t change until the pain of change is less than the pain of staying the same. Watch for a time when your child has had, or is about to have, an experience involving money. It can be either a positive or negative experience; you never can tell when a child will be receptive to new information.

When you’re deciding on the perfect time to teach your children about any aspect of money, wealth creation or any other life skill, here are two questions to ask yourself first:

• Is what I want to talk about with my child relevant to the current situation?
• Will the information I’m about to present provide a solution to a problem or situation my child is experiencing?

If the answer to these questions is Yes, then you probably have a teachable moment on your hands.

Once you think you have a teachable moment, the second step is to enroll the child in the information you want to give him. Before you start talking to him, ask him about the subject matter instead.

It’s important to make what you’re about to say relevant to your kids in some way. If it isn’t, they won’t listen. I’ve found it best to use another one of the powerful techniques we use in all of our programs called Enrolling Questions. Enrolling Questions help us engage and enroll people of all ages in the learning process.

As the name implies, this technique involves figuring out how to enroll the child in what you’re about to teach him, i.e. get him excited, engaged, listening and wanting more. It’s critical when you’re working with a group of kids to enroll 100% of them. Sometimes you have to ask several enrolling questions to get 100% but, in the end, it’s worth the effort.

Enrolling questions about money look something like this:

• How would you like to learn a way to make sure you always have money for things like that (meaning something they want you to purchase for them)?

• How would you like to make sure you always have plenty of money for the things you want and need?

• How powerful would it feel to be in charge of your own money instead of me controlling it?

• Picture this…what if I told you that I have an idea that will make it so you never have to ask me for money again?

• How would you like to learn how to take care of your own money now so this never happens again?

• How would you like to grow up and work because you want to, not because you have to?

• I see you like to help people. What if I could show you a way to have enough money to help anyone you wanted?
• How would it feel if…(fill in the blank with any kind of situation or scenario you’d like to paint for the child that you know she might want or enjoy).

• What would happen if…

• How would you like to…

• Imagine what would happen if…

• Imagine what it would be like if you could always…

You get the idea. An enrolling question gives just enough information to make the other party interested in what you’re about to say, but doesn’t give away the punch line (the subject matter). Remember, sometimes you have to ask several enrolling questions to get a person’s interest at any given time. (Psst. This technique works great in our adult relationships as well!)

Since you know your child’s interests, passions and hot buttons better than anyone else, it should be fairly easy to come up with a few enrolling questions that will get his attention and get him to ask, “How could I do that?” or “What do you mean?” or “Can you tell me more?” Any probing question on his part means he wants more information and you’ve hooked him.

Now that you have a teachable moment, and you have ’em hooked, it’s time to share your information. But do it in small doses; don’t try to teach them everything at once just because they’re interested and you finally have their attention. All in due time, as my mom used to say.

If someone sent you this article and you’d like to read more interesting tips, trick and philosophy on money and life, sign up today for Elisabeth’s FREE Weekly E-Zine, Financial Wisdom with a Twist and FREE monthly teleseminars at UltimateAllowanceBook.com.

For many people, there is a huge connection between life and finding one’s purpose. And for many of these people, the connection extends to their pocketbooks.

Over the last few decades, the idea that you should, “find your purpose in life in order to be happy and fulfilled,” has been brought to the forefront of the personal growth industry. If you think you need to read tons of self-help books or attend seminars and workshops to learn how to find your purpose, you have permission to simply say good-bye to this silly notion. And if you’ve suggested to your child that they will eventually find their own purpose, all the while perhaps still trying to find your own, please reconsider this suggestion.

Who said human beings are born with a single purpose? We do have a single purpose, but it’s not what most people think of when they think of ‘your purpose’ in life. Like all animals, our single purpose is to survive. What makes us think we’re any different from other animals is that we have brains that ‘apply meaning’ to things were there is no meaning.

“What do you mean, there’s no meaning?” Well, it’s not that things have no meaning; it’s that the meaning everything has comes from the meaning we give everything. We each apply our own meaning to the things that make up our lives. It’s easy to reason that if ten people make one thing mean ten different things, there’s either no meaning or any number of meanings.

How does this relate to each human being having a purpose? And how does having a purpose have to do with money? Simple. Many people believe the notion that they are here on Earth to serve a purpose and they spend countless hours, days, months or years searching for that purpose.

If they are lucky, they come to the realization that the key to being happy and feeling fulfilled is to live ‘on purpose,’ meaning that they do the things they do with a purpose in mind.  In addition, the more the things people do serves others in some way, the happier and more fulfilled they feel.

What does this have to do with kids and money? Well, it’s important that we help our children find their place in life, if that’s possible. And growing up with the preconceived notion that they have to find their purpose for living, on top of everything else, is just too much pressure.

Especially if you suggest to them that in order to be truly happy and fulfilled, they should be doing for a living something that involves ‘their purpose in life.’ Kids have enough pressure just to grow up, fit in, figure it out, etc. We don’t need to add the pressure of having to find their purpose and make money doing it on top of everything else. It’s a grand idea, yes, but it’s not necessarily the best way to create adults who take responsibility for themselves financially

Instead, suggest that they do what they do on purpose. In the area of money, this means that they spend their money on purpose, i.e., they think through what they want to spend their money on before they spend it. They invest their money on purpose, meaning they do their research and make sound decisions based on fact, history, numbers and expert advice. They donate a portion of their financial resources on purpose by researching charities and other avenues for helping others to make sure their donation dollars will be spent wisely.

Teaching children to take care of their money by teaching them to use it ‘on purpose’ will create adults who contemplate their earning, spending, saving, investing and donating decisions and they will be less likely to have second thoughts about these decisions.

Again, what does the connection between finding your purpose and being on purpose have to do with money? Hundreds of thousands of individuals have spent millions of dollars on books, seminars, workshops, life coaches, teleseminars, DVDs and CDs trying to find this illusive purpose they are supposed to be on earth for. Imagine for a second what that money would be worth if it had been invested instead. Now that’s a whole lot of money to do something with on purpose!

Here’s a few ways to help your kids, and you, think in terms of using your money on purpose:

• Before you buy anything, ask yourself the simple need vs. want question. If you really do need it, are there ways that you could get it by trading your time or energy for it (bartering)? Can you simply delay the purchase? If you only want it, ask yourself, “Can I do without it today?” This one question can keep you from wasting hundreds of thousands of dollars over the course of a lifetime.

• Ask yourself, “What would this money (that I am about to spend) be worth if I invested it at 10% for 20 years instead?” Often, when we realize the true potential of the money we’re about to spend, we realize we really don’t want or need the thing as badly as we thought.
• Find a way to buy or acquire the thing you want cheaper. Look for discounts, coupons, go to Craigslist, Ebay, look in your local papers, go to thrift stores, garage and yard sales. You’d be surprised at how much less you can purchase something if you really do your research.
• Ask yourself how your donation dollars could be put to greater use? Is there some way to leverage the money so that it serves more people? What if you wanted to donate $100 to a homeless shelter but instead, attended a local college basketball game with 4000 loyal fans, set up a table and sold 200 raffle tickets for $5 each for the $100 prize? You can now donate $1000 to the homeless shelter instead!

Bottom line, to be more financially savvy, learn to handle your money on purpose. There’s many ways to do this, but simply being aware of what you’re doing with every dollar that passes through your life is a great start.

Just something to think about!

If you’ve read many of my articles to date, you know how passionate I am about our involvement in our own children’s financial education. You also know I feel about making sure your children are involved in all aspects of the family finances.

To give you some ideas on how exactly to do this, I’ve compiled a list of activities for you to do with your child. These activities will give your kids a good idea of what is involved in running a household and what it takes to be on the right track financially.

Remember, there is no cut and dry answer in terms of how to prepare your child for financial independence. Each child is different, learns different, will filter information and experiences through their previous experiences and so forth. But if you bring your children into your family’s financial life at an early age, they will embrace it just as easily as they embrace brushing their teeth every day (OK, so some will and some won’t but it’s rare adult who doesn’t brush their teeth at least once a day:-).

1. Create your family’s monthly or yearly budget with your child(ren).

Let them see how much money it takes to pay the mortgage or rent, buy the food, pay for their education, buy the dog food, etc. Kids rarely have any idea of how much it actually costs just to buy the basics these days.

In our Camp Millionaire program, the campers are sent home one afternoon with a piece of wealth work we call, “What it costs to raise me.” This sheet lists all the basic costs associated with raising a child and parents help the kids fill in the blanks. The most common remark we get from kids is that they had no idea how ‘spoiled’ they were! Parents often tell us in person how valuable that exercise is.

If you’d like to go over this with your kids, just click here to download a copy of this sheet. You’ll be glad you did.

2. Take your child(ren) to see the family’s financial advisor, CPA or accountant, lawyers, insurance agents, etc.

Children need to understand the concept of developing a qualified team of experts to advise you. In case you haven’t noticed, life in America at least, has gotten quite legal heavy. There seems to be laws for everything these days and if you want to stay above the fold on what is best for your financial situation, you really need to have a team in place.

If you don’t have a team built yet, that’s OK. There’s no time like the present, as they say. Bring your kids in on the development of the team as well.

3. Teach you child(ren) how to make all types of lists.

Grocery lists, want lists, to-do lists, etc. One of the most overwhelming aspects of adult life seems to be the perpetual ‘to do’ lists in our heads. As you learn how to develop a ‘to do’ list system that works for you, teach it to your children. This way all that ‘stuff’ is out of your head and on paper where you can access it easily while letting go of the need to remember it.

The best system I have found for me is as follows. I create a Master Week List on a white or yellow legal pad on Sunday night or Monday morning (evening is best). Then, each evening that week, I look at the master list and decide on my daily list. I find this system really works because it allows me to prioritize each day. The best part is that I’m not constantly looking at the LARGE list and therefore, not getting too overwhelmed.

4. Turn learning about assets into a wonderful family activity.

There is so much information on the internet that exploring the world of the stock market, real estate and building online and offline businesses is fun and exciting. Just pick a topic each week or month, do a search on Google or your favorite search engine and start reading. Remember not to take everything at face value, however; another great thing to teach your kids.

5. Invite successful people to your home for coffee or a meal and let your child(ren) sit in on the conversation.

Let your guest in on the reason you’re having him or her over. Letting the child get to interact and observe successful people is a great way for them to understand what type of people are wealthy and which ones aren’t. After a meeting, sit down with your child and ask them what they noticed and after having met with many people over the course of a year or two, you and your child will no doubt have begun to notice patterns of behavior, choices, attitudes, etc. that common among highly effective and successful people.

6. Pay your child(ren) to read success, wealth building and business books.

OK, this one may shock you so hang on to your seat. As many of you know, there are a lot of great financial and business books available now, some are even targeted toward children (including the one I’m writing right now). I highly recommend that you get yourself a library of them and do whatever you can to entice your teens to read these books, including PAYING THEM! Think of it this way. They can sit in front of the computer or TV or Ipod or whatever other electronic device is the distracter de jour or they can be filling their minds with information that will motivate them from the inside. The information in these books will change their lives and give them direction for creating their own successful life. Why not make that their first paid position? It may well be your best parenting investment yet.

If someone sent you this article and you’d like to read more interesting tips, trick and philosophy on money and life, sign up today for Elisabeth’s FREE Weekly E-Zine, Financial Wisdom with a Twist and FREE monthly teleseminars at UltimateAllowanceBook.com.

Many adults set yearly goals while others set monthly or weekly goals. Only a handful set daily goals. Statistics show that people who set daily goals reach more of their goals than those who don’t.

Regardless of how often parents set their own goals, it is common that they forget to include their children in this amazingly powerful process.

Enter the Soccer Game

So what does soccer have to do with teaching children to set goals?  Well, think of it this way: you have a soccer field, the halfway line, the goal box, the actual goal, the penalty box, the end line (a.k.a. goal line) and the sideline.  You also have a place for the fans, sometimes a snack shop, coaches, volunteers and other support staff and, finally, you have the ball.

A great deal goes into winning a soccer game.  You have to decide you want to play soccer.  You have to learn how to play and you have have to learn the rules.  You have to find a team to play on and learn what it means to be a team player.  You have to show up, play your best, move the ball forward to score, watch everything that’s going on and make quick decisions about which way to go to get the ball in the goal box and finally, you have to be ready to kick the ball into the goal when the opportunity presents itself–sometimes in a very brief window of time.

Sounds a bit like life, and you can use this scenario to explain goal setting to your kids.  Even if they don’t play soccer, they will relate to the sports metaphor much more readily than just trying to explain goal setting to them.

Inviting Your Children to Join Your Goal Setting Process

If you have children, include them in your own goal setting process and help them set a few of their own. If you’ve never set goals before, now is the perfect time to start.

Did you know that the major thing that sets successful people apart from unsuccessful people is that successful people write their goals down on paper AND they write them down on a regular basis?

If writing your goals down is one of the major things that defines whether or not a person is successful (that and a bit of action), then teaching your kids to set and achieve goals may be one of the many life skills you should seriously consider modeling for them.

First Time Goal Setting

Okay, if you’ve never ever really sat down long enough to consider WHERE you’re going or WHAT you want in life, it’s okay because you can start now. The future is like a brand new sketchbook ready for you to create, full of colors, shapes, feelings and expression.

Oh, you thought you were just going to WRITE your goals down on paper?  Well, that’s a great start but why not do a picture goal board, also called a Dream Board or Vision Board. Napoleon Hill, the author of Think and Grow Rich, once said that what the mind can conceive and believe, the mind can achieve.  We need to teach our children this concept early in life! This may the one thing that turns your children into leaders and the “CEOs of their own lives” instead of victims.

Creating Dream/Vision Boards

This is a fun and simple process which starts with the proverbial question: What do I really want in life?  Before you begin creating your dream board, write this question at the top of a piece of paper and sit quietly to answer it. Have each child that is creating a board with you do this exercise as well. Kids generally love this part!

Here’s what you and your kids will need:

1. Two to three hours of uninterrupted time to relax and create along with some great music to create by.
2. Poster board.  Half sheets work best but if you want to use full sheets, by all means have at it.  Note: poster board generally has a shiny side and a matte side.  If you’re going to use markers, use the matte side as the shiny side smears (ask me how I know!).
3. Lots of magazines filled with great photos, alphabet letters (for ransom note like cut out words), etc.  Magazines of your favorite hobbies and interests are great.  Thrift stores often have lots of magazines if you don’t have a ready stock on hand.
4. Tape, glue, scissors, markers, other art supplies for cutting out and attaching images to your poster board.

That’s it. Assemble the things you need, set aside the time for your whole family to create the next year of their lives (or more) just the way they want it and have a great time doing it.

After everyone in the family has created their own dream or vision board and put it on the door or wall of their choice, create a Family Dream Board for the coming year and put it on the fridge so the whole family sees it everyday!

Now, go plan your life and teach your children how to plan theirs in the process!  You’ll be surprised at how much fun it is. And, when things start coming true and showing up for you and your kids, you’ll be even more excited about creating one for next year.

If someone sent you this article and you’d like to read more interesting tips, trick and philosophy on money and life, sign up today for Elisabeth’s FREE Weekly E-Zine, Financial Wisdom with a Twist and FREE monthly teleseminars at UltimateAllowanceBook.com.

One of the most interesting aspects of life is the disparity between knowing what you need to do in order to have the life you want and actually doing those things. This conversation always leads back to the concept referred to as “Be – Do – Have”.

For those of you who are aware of this conundrum of sorts, you understand that the BE part has to come first. The question has always been, “How to you GET to the BE part?”

It’s much like the question of the chicken and the egg. Which did come first? It’s one of those answers our brains often freak out about. Like thinking about the immenseness of the Universe. Does it have an end or doesn’t it? And if it does, where is it and what comes next? Our brains just want to climb under the safety of a warm, down comforter and not think about it any more!

Let’s explore this ‘Be, Do, Have’ thing. Let’s put on our pristine white scientist cloak and tuck our loose hair in one of those fashionable hair-nets and look at it under the magnifying glass as if we’ve never heard of it before. And perhaps you haven’t.

Let’s apply this to your life’s financial situation. For the purposes of this discussion, let’s say you are $10,000 in debt, have a decent job making $4000 a month and have expenses of $3850 a month. You have no savings, $5,000 in a retirement account from a previous employer and are in a state of frustration at this situation. You feel lost, hopeless and overwhelmed with your seeming inability to ‘get ahead’ and all you want is to be financially free someday.

This is actually a common situation in the United States even though a person in this position would be considered very rich in many parts of the world. Regardless, this is you and you want to change the situation. But how?

Be, Do, Have. But you’re thinking, “Wait, first I have to HAVE the money before I can BE anything or DO anything with the money!” Ah, this is where the thinking goes awry. But in a way, it does make sense. How can you possibly BE rich without the money? If this concept is new to you, hang on. It will become crystal clear under that microscope in just a bit.

What if, instead, you learned what BEING a millionaire looked like? What if you studied the habits of millionaires and started incorporating those habits into your daily life? What if you learned how millionaires thought and started thinking those thoughts instead of the thoughts you’ve been thinking all these years? Would it make a difference?

It makes all the difference in the world. We’ve all heard the stories of lottery winners who lose all of their winnings, and more. Why does this happen if they have millions of dollars coming in? Ask yourself this simple question: Why didn’t they have money BEFORE they were millionaires?

The simple answer is that they didn’t know HOW to be millionaires; they didn’t understand the thoughts, beliefs, attitudes and habits of wealthy people. They knew how to think like a poor or middle class person. So, when they got all that money, they continued to think like, and have habits of a poor or middle class person and there you go. They are out of money quicker than they are out of life to live it with.

You see, before anything shifts OUTSIDE of you, you have to choose to shift what’s INSIDE of you. And in order for that to happen you need several things and those things are sometimes described using the acronym ADKAR.

The first things that must happen for anything in your life to change is AWARENESS; an awareness that something in your life isn’t working and must be altered to get a more desirable result. Once you have that awareness, the next step is to have a DESIRE to change the situation.

There’s a saying that goes like this…People don’t change until the pain of change is greater than the pain of staying the same.

After you’ve discovered an awareness that something needs changing and you develop the desire to change it, you must then seek the KNOWLEDGE you need in order to make the change you wish to make. The best part is that once you are in this place mentally and emotionally, the knowledge you need seems to seek you! It is everywhere. It’s as if you willed it to you. Surprise! You did. Just by starting to think it, it started to come. Seem too good to be true? Have you heard of the movies, The Secret or What The Bleep Do We know? These movies are based on the idea that our thinking makes it so. Napoleon Hill, the author of one of the best read success books, Think and Grow Rich, said it this way…Thoughts are Things. Try it. What do you have to lose?

Now you have the knowledge. What next? You must take ACTION and this is where people get hung up and where the BE, DO, HAVE concept enters back into the picture. You see, a wealthy person who is BEING a wealthy person, naturally does the things he or she must do in order to get and stay wealthy. You must learn to BE the wealthy person before you will BE the wealthy person. And now it gets a little muddy under our microscope for just a little while. Sometimes, before you have the beingness of that wealthy person ingrained in your cells, you just have to DO what they do until it comes naturally.

I suspect you are really confused now. Stay with it…confusion is a great state to be in. It tells you that you’re on to something new and exiting.

You see, the more you DO what a wealthy person does, the easier it becomes to continue to DO those things and, before you even notice, you are BEING the wealthy person naturally and you don’t have to stop and consider what the next, right, supportive action that will lead you right to what you wanted, and where you wanted to be, in the first place. This is when it all becomes second nature and you don’t have a clue why you thought it was so hard to begin with when you were still BEING that poor or middle class person.

To finish the process, you find yourself, sometimes quicker than you ever imagined possible, at the RESULT you were after. Congratulations. Now you can HAVE all those things in life that you’ve dreamed possible. The fact is that you just made them possible by BEING the type of person that lives that kind of life.

Let’s review the ADKAR process: Awareness, Desire, Knowledge, Action and Results. It takes the really complicated idea of changing your life and lays it right out there in simple steps you can follow, if you want to change something badly enough.

Which takes us back to the very initial question: How do you go from knowing you want to get somewhere in your life to actually being there? Now you know. Use the ADKAR formula, sprinkle in a lot of Be, Do, Have along the way, season with laughter, stop along the way to celebrate your progress and viola’, you have the life you want. Good luck with it. Oh, and the Results at the end? That would be Your Life. Enjoy.

Elisabeth Donati is the owner of Creative Wealth Intl., LLC and creator of Camp Millionaire, a unique and effective financial intelligence program for kids and teens and Creative Wealth for Women, a workshop designed with the special financial needs of women in mind. She is an expert in teaching the basic financial principles people need in a way that is engaging, empowering and fun. For more information, visit http://www.innerwealthpublishing.com.

She is the author of the only financial parenting book parents need, The Ultimate Allowance, available at http://www.ultimateallowancebook.com.

Please feel free to email her at: elisabethdonati@gmail.com or give her a call at 805-957-1024.

If someone sent you this article and you’d like to read more interesting tips, trick and philosophy on money and life, sign up today for Elisabeth’s FREE Weekly E-Zine, Financial Wisdom with a Twist and FREE monthly teleseminars at UltimateAllowanceBook.com.

It’s that time of year again. Time to ‘help’ your kids buy gifts (if you do gifts) for others. And by help, I mean help them literally and financially.

There’s so many options for this ‘help’, I could write a book on the subject but let me illustrate a few of the most common approaches to helping kids buy gifts with a few pointers to help reduce the stress around kids and holiday gift buying and giving.

Scenario #1. Your kids don’t get an allowance and they aren’t earning money of their own.

Since this situation can be the most expensive situation, let’s deal with this one first.

First, have you child make a list of the people he/she wants to buy gifts for with a column of potential gifts and a column of the projected cost of that gift that he would like to give that person. This activity is great for kids so they get an idea of how expensive gift-giving can actually be!

Once your child’s list of people and gifts is finished, sit down with him and work out a budget for the purchases. Make an agreement with your child about the ‘help’ you will be providing.

• Will you simply be buying the gifts for the child to give?
• Will you be loaning the money to the child to buy the gifts and they have to pay you back somehow (extra chores, outside job, etc.)?
• Will you split the costs: you pay for half, you ‘loan’ him the rest of the money required to purchase the agreed upon gifts?Encourage the child to consider making gifts by hand in order to save money as well as the fact that it will lend a nice personal touch to the gift. Helping the child create these gifts is often a wonderful bonding experience for you and the child and creates positive memories around family and holidays. (To this day, I remember my Mom helping me make home-made ornaments for the tree and it makes me smile!)

Once you make the gift-buying agreement, stick with it. Help your child learn to stay within their ‘budget’. Experience is the main way children learn to handle their money wisely. Do everything you can to ensure their success and praise this success.

Celebrate their success by doing something the child likes to do rather than rewarding him with a gift something as celebration. This sends the wrong message, i.e., I do a good job, I spend money on ‘stuff.’ Not a message we want them to learn and not a belief or habit that will be supportive as he grows up to handle all his financial needs.

Scenario #2: You give your child an allowance and/or they make their own money. (If you are using The Ultimate Allowance system, gift-giving will be figured into their Living Jar.)

In this situation, it’s important to establish an understanding about where gifts fit into the allowance system or both of your expectations of how and what the child’s own hard-earned money is used for.

Hard feelings usually result from misunderstandings and unspoken expectations that one person had of another person or situation. Have this conversation early in the game.

Again, there’s a couple of options, but first have your child make the person/gift list mentioned above. Before we move on, because the money being spent is primarily the child’s money, it’s important to understand the different types of money personalities a child may have and how this may affect his spending. The four classic money personalities are as follows:

Spender: this personality is happy to spend money any time. They love buying things for themselves and others, often with no thought about the future or additional spending or expenditures that are coming up.

Saver: this personality isn’t so happy spending money. They prefer to save it and watch it grow. They are actually quite reticent about money and ‘wasting’ it on others and unnecessary things. Their purchases often have to be well thought out, calculated over and over again and have enough relevance to warrant the spending.

Avoider: this personality doesn’t want to have to even think about all the gifts and the spending and the wrapping and such. They are the last minute buyers that put it off until the very last moment because they just didn’t want to deal with it, whether they have the money or not.

Monk: this personality usually is a little put off that they are expected to buy gifts for people just because it’s a holiday. They are very ho-hum about the whole thing. They would rather donate their time to a food bank or shelter than buy a bunch of piddlyjunk someone probably doesn’t need anyway and they don’t necessarily have the money to purchase.

With a child that is spending his OWN money, the personalities come into play a little more than when they are spending YOUR money for some reason. It’s just a little more painful when they are spending THEIRS. All the more reason to really stay involved, help them budget, come up with gift ideas and options and help stay present (no pun intended) during the gift giving process so they are successful, stay within their budget, are happy with their purchases and have hopefully learned a bit about money.

Again, in Scenario #2, you can make an agreement to help your child with the gift purchases, paying ½ while they pay ½ .

Each child will learn different lessons during the holiday season as they get older because they are accumulating beliefs about money, gift buying, the meaning of the holidays (does Santa exist or not?), the commercialism and more.

Bottom line, as always, the best thing to do is simply pay attention to your child to see how he is doing during the holidays in the realm of handling money and purchasing gifts for others. Ask yourself, “What powerful money habits and lessons can I help instill in my child by the things he experiences this year?” You’ll be surprised by the answers that come up.

It’s never too early or too late to learn how money works and how to make it work for you. Your children are learning all the time by what you are doing with your own money, what you are saying about money and by their own experiences with the green stuff.

Here’s some basic financial philosophies you might work on this season: only borrow money if it makes you money, pay yourself first (are they taking care of their own needs first?), helping others is helping yourself and one of the most important…money is a tool to reach your dreams and the dreams of others.

What will your children learn this holiday season? Set it up in advance and watch your children gradually grow into financially-savvy adults. Now that’s the best gift of all!

Elisabeth Donati is the owner of Creative Wealth Intl., LLC and creator of Camp Millionaire, a unique and effective financial intelligence program for kids and teens and Creative Wealth for Women, a workshop designed with the special financial needs of women in mind. She is an expert in teaching the basic financial principles people need in a way that is engaging, empowering and fun. For more information, visit http://www.innerwealthpublishing.com.

She is the author of the only financial parenting book parents need, The Ultimate Allowance, available at http://www.ultimateallowancebook.com.

Please feel free to email her at: elisabethdonati@gmail.com or give her a call at 805-957-1024.

If someone sent you this article and you’d like to read more interesting tips, trick and philosophy on money and life, sign up today for Elisabeth’s FREE Weekly E-Zine, Financial Wisdom with a Twist and FREE monthly teleseminars at UltimateAllowanceBook.com.