Teaching your children about credit at a young age is important. It is one of life's most valuable lessons. While it may seem shallow, financial skills can make your child's life a lot easier. Of course, money cannot buy happiness, but money problems can cause a lot of unhappiness. Do not think of it as teaching your children how to be rich. Instead, think of it as teaching them to stay out of trouble.

You already know that bad habits are extremely hard to break. If you have ever struggled with a bad habit, you know this from first-hand experience. The best thing you can do for your children is help them develop good financial habits and make smart choices about money, so they won't spend their way to financial ruin.

The best way that you can teach your children how to handle money is to be responsible with it yourself. Lead by example, and they will pick up cues and behaviors from you over the years. If you are thrifty, responsible, and avoid unnecessary debt, your children are likely to be the same way. If you are irresponsible and spend more than you have, your children will almost certainly do the same. Consider a major fringe benefit of setting a good example: you will have good credit. You won't have to deal with the same headaches and costs that a person with bad credit does.