The Orlando Sentinel has a good story today suggesting that parents should use the current economic downturn as an opportunity to discuss family finances and to teach their children–especially teens–about money management. Particularly for parents who have been laid off, these talks can be essential when teaching young people how to be financially stable in a tumultuous economy.

From the article:

• Bring numbers to the table. Go over the household budget. Have the children make a budget. Explain cash flow and what you can and cannot afford. Discuss budget cuts and saving cash for a rainy day.
• Explain the fundamentals: how to invest, establish credit, avoid credit-card debt, use checking and savings accounts, interpret interest rates and track how money is spent.
• Know the value of “No”: Explain why the family won’t be spending as much in the past on things such as clothes, cars, vacations and eating out.
• Explain how developing financial skills will help them avoid the mistakes that have gotten others into trouble during this recession.

With many high schools eliminating elective classes, and the number of students taking economic literacy classes decreasing, the only sure place for your kids to learn these valuable skills is at home.

Our Family Place has an online “Family Resource Center” that gives useful tips on how to save money and how to budget wisely for a family. This is just one of the many websites where you can find useful tips for saving money, creating a budget, using coupons, etc.

A bill currently in Congress, the Financial and Economic Literacy Improvement Act of 2009, would provide $250 million in grants for financial literacy programs in schools. Regardless of whether formal economic education courses are available, money management is an important skill for all young adults. And for anyone raising a family, it’s essential not to underestimate the value of passing on good financial habits.

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