Prior to going to school, do you think kids know if they are wearing hand-me-down clothes? Most times, parents dress their kids up to impress other parents. But this can be a costly trap. Ask friends, family and neighbours. You might find you can get clothes for free.

Being a parent can be the hardest thing in the world. One of the hardest jobs is to say no to children when they want something. If you are someone who really cannot say no to little John or Jill, here is a shock exercise which might stop you in your tracks. Grab a pen and notepad and each time you purchase your children something write it down with the price next to it. Do this for a full month. Add the total and times it by twelve. Now times the total by the number of years they have got to go until they are 18. You might get a real shock!

Want to give your kids a quick money lesson. Next time Timmy or Sarah wants the brand new iPod or running shoes that every kid must own, find out the price for the iPod/shoes.

Take the child shopping with a calculator. Each time you put something in the trolley use the calculator to add up the total. Now once it gets to the price of the "must have item," show them a full trolley of goods. Explain this is how many groceries you could buy for the price of this item.

By showing children visually just how expensive their wants are they can begin to understand money does not grow on trees. Just this quick exercise can show kids exactly how much their item is really worth to the family.