You may be thinking to yourself, “Is there something simple I can do to make sure my kids don’t move home after they move out?” In other words, make sure they are financially self-reliant. I’m here to tell you that 'Yes, there’s some relatively simple things you can do to ensure that your kids leave your home knowing what to do with that green stuff they will be in charge of making, managing and multiplying.

The fact is that more young adults are not only leaving college these days because of financial problems (student loan and credit card debt) but they are also moving back home after they graduate because they simply don't make enough money to go it on their own. College students are also committing suicide because of this same debt! Why is this happening? 

There’s many reason, but the primary cause is simply that kids don’t have a clue what to do with their money. Most of them are very good at spending money, but it’s a rare 20-something that understands the power of saving and investing and even rarer the power of leverage, creating businesses and buying assets that produce passive income. Heck, for that matter, most adults don't understand this concept either.

Let’s get back to the three simple things you CAN do to empower your children.

FIRST, you must set the right example for your child. Because human beings learn best by example, it is critical that you first examine what you're teaching your children through your actions because they really do speak louder than words. How can you expect your child to save and invest if you don’t? How can you expect your child to grow up with a healthy understanding of money if you don't have a healthy understanding of money? How can you expect your children not to use credit cards if the only way they see you buy things with is a credit card?

Educate yourself. If you don’t know how to manage your money, or start investing, and can only take a guess at how you might create Passive Income, then you must start with yourself. There are books and seminars everywhere. You have no excuse but the excuses you make to let yourself off the hook. Often we say 'We can't" when really we're saying, "We won't." A great place to start is a program called the Millionaire Mind Intensive. For more information, visit www.peakpotentials.com/a/tofreedomandbeyond.

If you’re doing a great job, congrats. Ask yourself how else you might ‘show’ your kids about money with your daily routine and don't leave your kid's friends and the neighbor kids out of the equation. Often times, kids learn better from people other than their parents so look for opportunities to teach others kids also.

SECONDLY, talk to your kids about money. Take every opportunity you can to open up a line of conversation about family expenses, credit cards, debt, interest, investing, real estate, the stock market, financial beliefs, etc. 'Your thoughts, beliefs and attitudes' is one of our Money Camp principles. Secrets of the Millionaire Mind, a great book by T. Harv Eker is available on our website (themoneycamp.com) and the adults in all of our programs rave about how it has changed their financial lives.

Some examples of when to talk to you kids about money are:

•        When you take money out of the ATM, have a conversation about where the money comes from, why you can only take out so much, etc.
•        When you pay for the groceries with your credit card to get points so the whole family can go on vacation, make sure they understand the importance of paying the bill off EVERY SINGLE MONTH!
•        When you pay bills, let them help you write checks or pay the bills online. Teach them how to check the accuracy of each bill.
•        When you deposit money into your bank, visit your investment advisor or accountant, take your child along.

The worst thing you can do is assume that someone else is going to teach your child about money, followed only by not talking to the child at all. What children learn from parents who don't talk about money is that talking about money isn’t OK. A healthier way to look at money is simply as a tool to reach your dreams (another Money Camp Principle); it doesn’t mean we’re better or thinner or smarter or anything. In Money Camp, kids of all ages realize that money is just a powerful tool, and depending on how you use it, it can help you and others or injure yourself and others in ways you may never have imagined.

THIRDLY, I want you to consider giving your child an allowance, but not the kind you may be thinking of. In my new book, The Ultimate Allowance, I talk about how to take the money you already spend supporting your child and instead, flow the money through your child. I've read that it takes an average of $275,000 to raise a child through age 17. If you run even a portion of that money through your child, imagine the practice they're going to get before they leave home. By making great choices, and not so great choices, they will learn the ins and outs of money management before they are out on their own. 

In summary, just remember that human beings learn best by example. Your children are watching every single thing you do with your money, listening to everything you say about money and internalizing all the experiences they are having with money, so pay attention to the example you are setting.

And finally… talk, talk, talk to them about anything and everything financial. It’s the best investment you can make in your child’s financial future and we promise it will ‘pay off’ in the end!