For many Americans, money is tight. Not having a budget and making frivolous purchases are no longer options. But, what do you do when your child wants the brand new toy that his or her friend has? How do you explain your finances and what is appropriate to say? 

Leslie H. Tayne, founder of the Law Offices of Leslie H. Tayne, P.C., a legal firm that delivers comprehensive strategic consulting and support services with practice specialties in consumer unsecured debt resolution, consumer bankruptcy alternatives and avoidance offers the following tips when explaining finances to children:

Age Appropriate Discussions                                                            
"As a mother of three, I always tell my clients to consider age appropriate discussions with their kids," says Ms. Tayne. "Often times young children do not understand where money comes from. That's why it's never too early to explain that you have to work and earn money to buy things."

Learn to Save                                                                                        
Children of all ages can learn by saving money. Start with a piggy bank for young children who are learning to count. Teach them the difference between coins and bills. Then when old enough for an allowance move on to a savings account. Giving children an allowance teaches them the concept of earning money for work. Make regular deposits into the savings account so your child will learn that savings is an important part of life. Allowing them to withdraw money for a purchase is important too to avoid discouraging savings. At the same time encourage them to then use common sense when making purchases.

Just Say No                                                                                                                                        
It's an important lesson to learn that we can't have everything we see and want. Teach them the difference between wants and needs. Children should learn that purchases need to be saved for and cannot be bought at any given moment. Just as adults should be budgeting to avoid overspending, children too can be taught to put money aside. "Teach children some basic principles about how money should be put aside for spending now, for spending later and for special purchases," says Ms. Tayne. Open dialogue with children about this will guide them as they get older regarding their own finances.

Lead by Example                                                                                  
As a parent, one of the most important things that can be done is to practice what is taught. Look at your own spending habits and make it a point to be frugal and manage money more effectively. When using a credit card explain that although you didn't pay now you will have to pay later and that could include more money called interest and that credit cards are really a loan. The openness of financial discussions in your home can prepare children for a future of financial well-being.

Ms. Tayne adds, "Talking openly and honestly with your children about your finances can be difficult, but valuable lessons can also be learned from you as parent and teacher. Children do not need to know the details of what you as a parent owe or how much you make. A general understanding of the source and expenses is enough. Discussions should be kept positive, open and more matter-of fact. Family spending and finances should not be a topic that becomes a burden to children. They will learn from you through observation so take the time to talk to them about your spending habits and that of others. Answering their questions honestly can lead them to a financial future that is more secure."

The Law Offices of Leslie H. Tayne assists consumers and individuals with the resolution of their unsecured debts. The debt help specialty firm was established in 2001 and is a now a proven leader in consumer debt resolution with a known reputation as a reliable, responsible and trustworthy debt assistance program. The firm's flexible and well established policies and procedures have assisted thousands of individuals on the road to a debt free life. The Law Offices of Leslie H. Tayne hope to assist, educate and support their clients through the tough and stressful road to financial freedom and from the burden of what seems to be never ending debt. For more information please contact 1-866-890-7337 or visit www.attorney-newyork.com/.