1. Live within your means
Children learn from watching their parents. Spending extravagantly on overseas trips, electronics and expensive cars does not seem justifiable if parents are struggling to pay school fees and debts. Encourage your kids to save for something special.
2. Instil a culture of saving
By giving your children everything they want, you are allowing for instant gratification, which if left unchecked, could lead into a culture of debt as an adult. Children need to understand the concept of saving for something important to them. For most families, this is done by giving a monthly allowance. You can even go one step further as they get older and give them an appropriate monthly budget for clothes, toiletries and entertainment. If they spend all their cash in the first week, they will have to deal with the consequences of having nothing left for the rest of the month.
3. No get-rich-quick shortcuts