Did you know that many people retire broke?

It's true. After a lifetime of hard work and having earnedliterally hundreds of thousands of dollars, they end up withnothing.

So where did all their hard-earned cash go? The answer is,it passed right through their fingers.

While schools are great at teaching algebra, calculus, andgeometry... how many of us learned about the basics ofpersonal finance and creating financial security forourselves?

The truth is, the earlier you learn to handle money, themore likely you are to manage it properly and live aprosperous life.

So why not provide a little home schooling for your familyand teach them the basics? Here are 7 important lessons toinstill in your kids about money:

1. Save something of what you earn

Acquiring the savings habit is one of the smartest thingsyou can ever do.

If you're reading this now as a middle-aged parent, imaginehow much you'd have in the bank today if you'd saved 10% ofeverything you'd ever earned.

(It's almost scary to think about, isn't it?)

Teach your kids to save a little of everything they earn.

2. Don't borrow what you can't pay back

Debt is one of the greatest social diseases of our time. Theprice to pay for the "have now, pay later" philosophy isthat you certainly will pay later.

Debt imprisons you in a job you don't like, creates stressand anxiety in your life, and erodes your wealth creationprogram.

You will never become rich while you're in debt. Period.

Teach your kids the value of delayed gratification. "If indoubt, go without".

3. To give is to get

Managing money doesn't mean hoarding it and locking it awayin its own purpose-built high security jail. It simplymeans being careful, spending wisely, and acquiring aregular savings habit.

Teach your kids that donating money to worthwhile causes isa noble thing to do, and that the money returns to you inmore ways than you can imagine.

4. Money isn't evil

"Money is the root of all evil" and "filthy lucre" arephrases you'll hear banded around.

Ignore them.

Money actually brings enormous good into the world. Forexample:

- Creating wealth helps create jobs for others

- Investing in business helps to bring solutions intopeople's lives by way of innovative products and services

- Acquiring a great fortune allows you to donate more moneyto charity - or even start your own trust fund

Teach your kids that money is neither good nor bad - it'swhat you do with it that makes the difference.

5. If you don't spend much, you can't lose much!

One of the oldest wealth-creation maxims is, "It takes moneyto make money".

Unfortunately, it also takes money to lose money.

Teach your kids the value of caution when entering intofinancial affairs. And let them know that many self-mademillionaires started with literally nothing.

6. Get the best price for everything you can

Your financial health is really the difference between howmuch you earn and how much you spend. It therefore makessense not to pay any more money for something than you haveto.

Teach your kids that bargain-hunting doesn't make you a"miser" - just a sensible individual.

7. The fast buck is your last buck

Sooner or later everyone gets offered a "surefire" method ofmaking a fortune, whether it's the three-card trick, aonce-in-a-lifetime investment plan, or some time-limitedbusiness opportunity only available to a select few...

Don't fall for too-good-to-be-true scams.

Teach your kids that wealth creation is a simple andtimeless process based on common sense.

If you had learned the above principles when you were 10years old, and had applied them every day of your life,would you be financially healthier today?

You betcha!

Teach your kids the timeless truths of acquiring and keepingwealth.

Knowledge truly is the most precious gift you can give.

Author's Bio: 

Paul Davis writes for Debt Elimination 4U, showing ordinary people how to get out of debt and stay out! Visit the site at: Debt Elimination 4U