By MainStreet.com Staff Writers

When it comes to getting what they want, kids are quick studies. Why not use that trait to teach your kids how to manage money from an early age? These days, many adults are learning the importance of fiscal responsibility the hard way. You can save your kids from those hard lessons by making them money savvy from the beginning.

Here are some strategies you can use to instill solid financial habits in your children early:

1. Give your kids a regular allowance. Establishing a regular income for your kids in the form of an allowance is key to teach a child how to make a budget (see strategy No. 2). Your child’s age can determine his allowance (for example, $1 per year of life) or it can be linked to chores or tasks. Make sure the allowance is enough to cover the expenses you expect your child to fund, however. If you expect your child to buy lunches each day, for example, make sure the allowance is enough to pay for that plus a little more for other expenses.

2. Help your child make a budget. Getting your child in the habit of creating and managing a budget will prevent many financial difficulties in the future. Help your child prioritize what is import to her, and together create a budget that allocates her allowance to those things. Go over the importance of saving, investing and charitable giving in addition to spending. Suggest a percentage of your child’s allowance go toward those goals. Teach your child to separate her allowance as soon as she gets it into difference categories for spending, savings, investment and charitable giving. (And check out MainStreet’s review of a piggy bank that does just that.)

3. Let your child take financial responsibility for some large purchases. As your child gets older, let him take on the responsibility of saving for big-ticket items. For example, if your child wants a new video game that costs $50, teach him how to save toward that goal. Sit down and help him calculate how much he would need to save for how long in order to afford that purchase. Then help him adjust his budget to reach that goal. If your child has to pay for large purchases himself and sacrifice other expenses, he will learn the value of his money that much sooner.

4. Teach your child about the stock market. Once children understand basic math like addition, subtraction and multiplication, understanding how to invest in the stock market isn’t that far off. Explain how the stock market works in very basic terms using stocks of products your child is familiar with such as Disney (Stock Quote: DIS). Help your child track a stock for a short period and do the basic calculations to determine if an investment would make or lose money over that period.

5. Help your child start investing. Once your child has an understanding of the stock market, help her set up a real investment. The funds can come from your child’s investment savings, or you can provide some seed money or matching money. Track how the investment performs regularly with your child. If your child has a part-time job, consider starting a Roth IRA to teach the importance of saving for retirement. Investing in a Roth IRA early can teach a valuable lesson about compound interest and provide a solid start for future retirement savings.

Your perfect little bundle of joy can cost a great deal of money long before they come home from the hospital. With everyone tightening their belts and trying to save more, cutting down the money you put towards your baby can save you a great deal. Babies are going to be expensive anyway, but there may be some places where you can cut some costs out and save some money for their college fund instead.

Do Not Go Overboard on Maternity Clothes – When your pregnancy is over, you will never wear your maternity clothes again (unless you plan on having another baby sometime in the future). People do not expect you to have as many outfits when you are pregnant as you do when you are not pregnant. Sometimes people get so caught up in having a variety of outfits that they just continue to spend on maternity clothes and later wish they had saved some of that money instead. It is difficult to not buy any maternity clothes, but you definitely do not have to spend a ridiculous amount of money. You could even ask some of your friends if you could borrow their clothes (if they are not using them).

Accept Hand-Me-Downs – There is no problem in accepting hand-me-downs from people who have had children in the past. If the clothes or baby toys or cribs are still in great condition then accepting these from others can save you a great deal of money. If people are willing to give you things that helped them out when they had children, then accepting them will help you out as well. Saving money in any way possible will help when the baby arrives and you have to spend even more money on diapers, formula, etc.

Budget Your Spending – Putting a cap on how much you want to spend on new items for your baby is extremely important. With all the clothes and baby products on the market, it is extremely easy to get caught up in spending on all the cute things or items that you might think you need until the baby arrives and then you never use them at all. Making sure you have a reasonable budget (and one that will not put you in debt) will really help you control your spending and have some money for when the baby arrives.

Listen to Advice from Friends/Family – Advice from people who have already had children is very valuable. They may have bought items in the past that they never used or have some great advice on how to save some money as your baby grows.

Think to the Future – Although it is hard to think of the future before your baby is even born, if everyone is buying you clothes for your newborn baby, you will not have any clothes for when they start growing a little bit. If people ask you what you need after you have your baby and want to buy you a gift, be honest with them and explain that you would like clothes for 10-12 months instead of for 3-6 months. Babies grow very quickly; you want to make sure you have all your bases covered.

Expensive is a word that comes along with baby…they are one in the same. However, these tips are definitely some ways that you can cut back your spending and still enjoy your bundle of joy.

— By Hannah Waters, Geezeo.com

Photo By: Gracey

It’s Saturday, what are you doing?  Browsing the web to find something worth reading?  Here’s what we liked this week:

If you are under 30, what kinds of goals have you set for yourself?  (You haven’t?  Hmm..  No time like the present to get the wheels turning!)  MSN thinks that there are 6 that you should consider.

1. Scale back on credit cards – It’s not as hip as you thought it was when you were 18.
2. Own a home or have a plan to – Have your feet firmly planted somewhere.
3. Have career skills developed – “Today’s workers must differentiate themselves in order to survive and thrive.”
4. Give money away – “We are an emotionally deprived nation that spends to feel good. When we feel down, we head to the mall.  The good vibes one feels from giving to a cause can also create that feel-good factor.”
5. Know yourself – Figure out what your priorities and values are and stick to them.
6. Know smart people – Knowing a good tax preparer, financial planner, attorney and insurance agent can save you a lot of money and stress.

Did you know? Peapod TAKES manufacturers’ coupons!  Yes!  That means that if you want to order from this online grocery service, then you can still use your coupons!  All you need to do is pass them over to the delivery driver, and you will be credited on your account.  This great tip was found over at WiseBread.  Go on over to see who else is accepting manufacture coupons.

Are you thinking of getting a pet?  Have you considered how much having one costs?  Counting My Pennies reminds us that “if you and your family are thinking of adopting a new pet, I really think you should sit down and consider the costs of owning a pet, both in terms of finances and in terms of your time.”  It’s an expense that could definitely add up quick!

Are you throwing a baby shower any time soon?  It could be worth your while to check out these frugal ideas from Sound Money Matters.  Here’s one of the ones we liked: Keep the Guest List Short

A baby shower doesn’t need to be huge. Although I’ve been to 20 or 30 person showers, I’ve also been to 10 person showers (second baby.) It seems like more than 20 is overkill, unless it’s a co-ed baby shower. You certainly don’t need to get into the range of 50 like you do for some wedding showers.

Check out Sound Money Matters for the other ideas!

Have you come across any other good reads?  Please let us know about them!

You can also let us know how you intend to use the $6,000 that you could win in The Great Geezeo Bailout!  (Don’t know what that is?  Sign up here!)

Are you expecting a bundle of joy?  With all the excitement of anticipating a new baby it’s important not to overlook how this little addition will change your finances.  Get your finances prepared right away with these tips:

1.  Start weekly savings immediately.  Get in the habit now of saving an additional $25 each week, or even more.  You can use this money as you plan for the baby’s arrival – or if it goes untouched it can be a great start to a college savings plan.  Once the baby arrives you will be in the habit of spending the extra cash, and then it can be shifted from going into a savings account every week and instead be used for expenses you don’t have now, such as diapers, formula and baby clothes.

2.  Make a list of the major items you will need.  Think about the big ticket items you will need before the baby arrives and write them down.  Included in this list should be: crib, changing table, car seat, stroller and high chair.  Writing these in a list will help you allocate the costs over the pregnancy, and allow you to explore alternate means to acquire everything.

3.  Shop alternative sources.  Once you have your list (see #2) start to plan where you can get these items.  Does anyone you know have an old crib they can pass down?  Don’t overlook resale shops for a changing table or other items.  Does the baby really need high-end designer digs?  Consider all options to get second-hand baby equipment.

4.  Be smart about your baby registry.  As cute as those Motley Crue onesies are, a well thought-out baby registry, containing only a few key big ticket items, will save you in the long run.  Let your friends and family know you would prefer they pool together for a big ticket item instead of individually buying small items that you can afford on your own.

5.  Change your W4 dependent tax elections.  If your little dependent will arrive any time this year his or her “dependency” status counts for the entire tax year.  As soon as you can in the year when your baby will be born, change the number of dependents on your W4 with your payroll or human resources department.  You are most likely declaring 1 for yourself and 1 for your spouse (plus another for any existing children).  Adding another “1” for your new dependent as soon as possible will decrease the amount of tax taken out of each paycheck, which of course will increase your take home pay.

The more you plan during pregnancy, the easier a new baby will be on your finances.