Make money child's play

With the end of the school holidays fast approaching, it may be worth considering a few child-friendly money lessons to help gently explain there is no pot of gold at the end of the rainbow.

As a parent, the advice you dispense, along with the way you deal with your finances will affect how your children manage their own cash right up until they reach retirement age.

After all, showing them how to manage their money now will hopefully prevent them getting straddled with mountains of debt as an adult, and make what they have stretch further.

£ Lesson - the value of money

Show your child how much things cost when you're shopping. The supermarket, or better still the local market, are obvious places to start. You can point out prices and then compare the cost of different items. For example, the prices of their favourite fruit and vegetables.

£ Lesson - learning how to budget

Get your youngsters involved in the household budget - use a pile of pennies to show them that money has to be allocated for food, bills and other monthly expenses before the remainder can be used for other items.

£ Lesson - helping them ignore peer pressure

Children will often ask how much money the family has, a quesiton often springing from playground boasts. It may help to explain that some people struggle to get enough money to buy basic food and clothes, while other families might have enough money not to worry. Also, tell them that they don't need to feel pressurised into having something just because their friends at school have it.

£ Lesson - lead by example

Help your children understand the value of things. If your son or daughter hears you boasting about your new designer jeans or perfume, they'll get the message that labels are important. However, non-label items and unusual vintage clothing can offer uniqueness and show that value is more than just financial. Why not talk about the other things you or your child could buy with the extra money required for designer labels? They may be quite shocked about how much more designer label costs.

Plan your kids' future financial well-being now!

Let your children see you dealing with money well yourself. This is the best way to encourage them to save and spend wisely. Above all, let them see that money doesn't grow on trees - there is a limit until you have worked to earn more.

However, even if you're in a mess financially and you think you can't be much of an example to your children, start cleaning up your act now and get the kids involved. They can learn as you learn, and they may be able to help along the way.

£ Lesson - new ways of thinking

Children need to learn they can't have everything. But rather than always saying,"I cant afford it", it's worth instilling in them the benefits of asking, "how could I afford it?". This will help them develop their money skills, and not limit expectations.