While I do have a Facebook and Twitter account, I have yet to tap into the instant news updates that my son receives on his cell phone. I still prefer to get my news around 5:30 AM with a cup of coffee and the newspaper. Regrettably today is day one without the Rocky! I subscribe to breaking news headlines by e-mail but I typically wait for the train ride home to catch up with what has happened since the morning via my Blackberry.

All that to say, my teenagers typically know what the Dow did or who has laid off thousands before I do. In today’s age of 24/7 news, our teens hear, even if they don’t give their undivided attention to, stories focused on the economy. By teaching children the importance of spending money wisely at an early age, dads and moms can help them avoid catastrophic mistakes later in life.

Junior Achievement, Rocky Mountain, Inc., recommends these six easy steps when discussing money management with your children:

Set Goals. Have your child list their short-term and long-term financial goals. A long-term goal may be to attend college or buy a car. Going on a summer trip may be a short-term goal. By setting a due date for their goals, children can track their progress and be flexible and realistic over time.

Develop a budget. Unless people track their money, they can’t budget effectively. Have your child write down everything they spend money on for one month. At the end of the month, have them total their expenses and use that amount to create a realistic monthly budget.

Start saving. Encourage your children to open savings accounts. Teach them to always save a portion of their paychecks or allowance for emergencies or to help reach their long-term financial goals. As their income rises, so should the percentage they save each month.

Manage credit wisely. Credit can help teenagers meet their financial goals, establish positive credit histories and cover emergency expenses. Help your child open one credit card with a low interest rate and a credit limit of $500 or $1,000. Make sure you also explain to them how important it is to pay more than the minimum payment amount each month.

Take responsibility. It’s important for children to learn that they are in control of their money from an early age. You won’t be around forever. Remind your children to always read the fine print, do the math and not be pressured into signing things quickly.

Learn more. There’s a lot of free financial information available for parents and children. Specifically, the Federal Reserve education Web site, offers personal financial education information and links to other useful resources. Additional information can also be found on the Junior Achievement Web site.

Adapted from a community column released by the Colorado Fatherhood Initiative.