Teaching children to value and manage money is increasingly difficult in our virtually cashless society. Today, kids watch their parents whip out a card (debit or credit) to pay for everything from gas to groceries. They make little, if any, connection to the dollars that card represents or the hours their parents work to pay for purchases. They tend to believe, understandably, that there is an endless supply of money accessed using that little card.

This new reality is why it is more important than ever to teach children the value of money and hard work – to instil a healthy and responsible attitude towards money and money management.

You may find a game helps children appreciate where money goes each month. Start with a copy of your budget and some play money (money from a game such as Monopoly or Stockticker).

Next break your budget into categories your children can understand. Categories such as transportation (car payments, gas and insurance), food, housing (including utilities and phone), extracurricular activities, clothing, and other expenses such as the Internet.

How you play the game is up to you. Some people like to play a guessing game. How much do you think our family spends on food each month, for instance? Other parents prefer to count money out for each category to show how much things cost and how much, if anything, is left over after the bills are paid.

There are many things you can do to help your children understand money. Here are some other ideas:

Talk about it
Discuss money issues with your kids on an ongoing basis, including how much things cost and why it is important to save money. Help your children understand that some expenditures — like groceries and mortgage payments — are necessities, while others, like another video game — are purely optional.

Learn to say no and mean it
Don’t give in to every request your child makes. Children need to learn to handle disappointment and to learn they cannot have everything they ask for. They also need to learn they must work — or wait — for things they desire.

Don’t confuse money with love
Spend time with your child, rather than money. Children often ask for things when what they really want is attention.

Give up control
Let your kids open their own bank account, make withdrawals and make purchases. Provide guidance, but resist the temptation to dictate what the kids can do with their discretionary money. They will make mistakes, but the mistakes will be theirs.