Yesterday, I had the pleasure of talking with several elementary school children about money. On camera, I asked them to give some financial advice to grown-ups. Some of their great suggestions were don’t spend more than you earn, only eat out once a month, don’t buy things you don’t need, and don’t go over your cell phone minutes. My personal favorite piece of advice: “Don’t be a fool!”

Of course, the earlier you start saving the better. However, I believe that some periods of life are better suited for saving than are others. The ideal time is not based on your age, but the age of your children (if you don’t have children, you are probably better rested than I am and this blog post probably won’t mean much to you).

A 2007 report by the US Department of Agriculture claims that the amount of money it takes to raise a child from birth to age 17 doesn’t fluctuate much per year. They estimate that families earning between $45,800 and $77,100 annually will spend $11,000 to $12,000 per year until age 17 for a total of $204,060. I am sure this type of information plays an important role in determining child support and foster care payments. However, as a practical family budgeter, I don’t buy it.

As all parents know, babies are expensive. Medical bills, childcare costs, time off work and baby supplies all add up. This is especially true if one spouse decides to leave their job to care for the children. Older children are also costly. Cars, college, and weddings are some of the larger ticket items you can look forward to. And this is assuming they don’t move back in with you!

Fortunately, I have discovered that there is a period of time between where the childcare costs end and the college tuition begins. This is your big chance! According to the National Association of Child Care Resource and Referral Agencies, parents of school-age children pay up to $8,600 a year for part-time care. When this ends or at least diminishes, start saving the amount you were paying in childcare into a savings account to prepare for retirement or the gobs of tuition that is looming on the horizon.

Don’t let this time pass you by or you’ll find yourself playing catch-up in your golden years.

We are so exicted to one of the sponsors for the upcoming Mom 2.0 Summit in Houston. In honor of the event, this week’s Blogging For Change posts will be by moms and for moms (& dads too)!

Every now and then out of a million and one questions, we’re asked something that presents the perfect opportunity to teach a valuable lesson. When your child begins to ask questions and express interest in your interaction with money, it’s a great time to start teaching them the importance of money and how to manage it properly.

As soon as a child can count and recognize the difference between coins, he or she is ready for their first lesson in money management. After explaining that mommies and daddies go to work so they can make money to buy the things they need and want, start discussing the difference between needs and wants. This discussion sets the stage for other lessons on money management such as saving, setting financial goals, and making wise investments.

The following are a few common activities to help give your kids a real life experience in money management:

Allow them to help. Children love to pretend they are grown-ups. Give them a grown-up responsibility at the grocery store and allow them to find a cereal they like that fits in a set budget. This may take a few tries, but it’s a fun way to give them a little hands-on training.

Let them earn it. Allowance is a great way for children to understand the value of a dollar. Whether their allowance is a $1 a week or $10 a week, earning money also teaches the value of hard work.

Play games. Besides the fact that your children would actually love to have an hour of your undivided attention, playing games such as Monopoly and LIFE will teach them how to make wise investments and handle money properly.

Show them how to grow it. Teach them the importance of saving. Open up a savings account in their name. Take regular trips together to make deposits. Allow them to fill out their own deposit slips- they’ll feel a sense of accomplishment.

Last, but definitely not least, its important to lead by example. Start by examining your own attitude about money. Your children learn more from what they see you do than from what you tell them.

We are so exicted to one of the sponsors for the upcoming Mom 2.0 Summit in Houston.  In honor of the event, this week’s Blogging For Change posts will be by moms and for moms (& dads too)!