BY LANA SANICHAR

We prepare our children for their future in so many ways. We teach them how to cook and how to drive. We teach them that it takes hard work to reach their goals, and last but not least, we teach them about the business of money.

In the first article of this four-part series, Fred Masters, a former professional educator and president of Masters Money Management Inc., commented that “saving until it hurts” is a key element of personal finance success for our young people.

When it comes to discussing and modelling saving-until-it-hurts behaviour with our teens and young adult children, here are a few saving goals that may help impart that lesson.

Post-secondary costs. For teens and young adults, some major expenses are likely just over the horizon. Postsecondary costs are the obvious one. Saving a significant portion of part-time job earnings is a terrific idea, given that these schooling costs—think tuition, books, supplies, food and entertainment— are looming.

First car. Borrowing your parents’ car is easy; buying a first car is a different game altogether. A quality used car still costs thousands of dollars. Parttime job earnings that are saved means taking on less debt when it comes to buying that first car—keeping it filled up, running and insured.

First apartment. We want the kids to launch when the timing is right, and they want to launch too. Saving in advance for the costs that accompany a first apartment is wise, practical and a good introduction to adulthood.

This wraps up our series on youth and money. Parents are first educators in many crucial areas. This certainly is true when it comes to personal finance. Children learn about money from their parents on many levels. Financial literacy is taught in schools but the “money lessons” that are taught at home—both formally and informally— are invaluable.