Somewhere along the way, we seem to have forgotten the value of money and the importance of saving for a rainy day. With unemployment at levels not seen in decades, families are now forced to live a more frugal lifestyle. The constant pursuit of buying the newest and best of everything allowed us to buy on credit and live well beyond our means. Credit was simply too easy to attain, and we abused it. Credit cards should really only be used as a last resort, not our first excuse to buy something we can't afford. However, it is never too late to make amends. In doing so, we need to make sure we impart the proper mindset in our children, and remind ourselves of the lessons we all have forgotten.

For those between the ages of 5 to 10, who are perhaps not yet aware of the value of money, there is a way to introduce the principles of saving, and the value of money earned. Our children are growing up in an age of debit and credit cards where money exchanges hands at the push of a button. It can almost appear like magic, when all we do is simply type a couple of numbers on a keypad and then walk out with something new. It is not uncommon for our children to never see money exchanging hands between what we buy, and whom we buy it from. The lessons they need to learn can only come from one source; us as parents. It is incumbent upon us to show our children not only how to save, but also the value of money and how to spend within their means. Along the way, we as parents may just learn something as well.

Give your child the job of recycling manager in your house.

It is never too early to empower your children to earn money. Give your child the title and the responsibility of being the recycling manager of your household. It will impart a sense of responsibility and will encourage an appreciation for all things green. Collect your aluminum cans and bottles for recycling. Can these be returned for some refunds at your local grocery store? This will be your child's reward for working to collect these bottles and storing them. At some stores, there are recycling machines that will take these aluminum cans and bottles, crush them, and then provide a receipt to exchange for money. Refer to this as your child's paycheck. Allow them the joy of getting paid themselves. Supplement this small income by giving a weekly allowance for collecting and segregating all the recyclables in your house. Make a list of these responsibilities, and check them off weekly with your child as they are completed.

Give them a savings goal and introduce them to the importance of working within a budget.

Want your child to truly appreciate their hard work? Make them understand the importance of working towards a goal and attaining it. Is there a favorite toy or new game they've wanted for a long time? Start by showing them how much they are making on a weekly basis, and how long it will take them to attain their goal. Make it a fun exercise where your child can see the fruits of his or her labor. However, don't stop there. Take this exercise a step further by explaining to them that once they buy what they've been saving for, they'll need an equal amount of time before they can spend the same amount again. Spend the time with them counting down towards their goal. Time is money. There is no better way to demonstrate this to a child than showing them exactly what it takes to both earn and save money.

There was a time when all of us had an appreciation for the value of money. When we were young, perhaps that one dollar could buy a number of things for us at the local corner store. We knew its value, and felt a sense of pride and accomplishment for being able to pay for something on our own. However, the ease of available credit led to mounting personal debt and an indifference to the value of money. These lessons aren't simply an exercise for our children, but one we as parents should adopt as well.