Our youth, released from years of post secondary study, fly from the nest and into the sunrise of promising careers and worthwhile lives.

Sniff! Swallow that lump. Our youngest is three years from graduation and we're already getting emotional.

Now, picture this. Five years after the cap and gown were returned to storage, the shoulders of our children are bent and bowed. The tens of thousands they accumulated in student debt is growing, not shrinking, made worse by car loans and credit cards that never seem to get paid off. Home ownership drifts unattainably far off and Mom and Dad have been hit up again for a loan just to cover the basics.

Can we change things? Can we set up our kids' lives and expectations to ensure they aren't crushed by debt before they are even 30 years old? We think so.

Some realities are inescapable, such as the high cost of education, the inability of young people to earn enough during the summer to pay more than a fraction of the price tag and the low wages awaiting many of them upon graduation. But there are lots of steps we can take to ensure our offspring don't make student debt worse with poor money management skills.

Here are some suggestions:

1. Give your children an allowance, by all means. But make them accountable for it. Hold a quarter of the sum in reserve. If and only if they have successfully recorded their spending at the end of the month, they get the rest.

2. Insist on saving. Like brushing teeth, it shouldn't be an option. The percentage should be around 25 per cent. Once they are out in the world, 10 per cent is the figure to aim for but when they are young, with no bills to pay, make it higher. Consider bonusing it up if they keep their hands off. Also encourage them to put a portion of cash gifts into savings.

3. Jobs are good. Shovel, cut, sweep, deliver ... it doesn't matter. In our opinion, no kid should reach high school without the experience of working. We don't buy the, "let kids be kids" line. Kids have always worked. Even an afternoon delivering newspapers teaches them about work. And part of the money they earn should be saved.

4. Split savings into two piles. Half goes into an RESP fund, for which they get a lovely 20 per cent government education savings grant. The other half goes into their own savings accounts. Saving up for purchases, or delaying gratification, is the single most valuable lesson you can teach a child.

5. Stop buying big ticket items for your kids right this very minute! Let them participate in saving up for the iPod or the Playstation. Big ticket items at 11 turn into bigger ticket items at 25. Car loans are a significant contributor to the crushing debt load of our youth, because it is too easy to purchase vehicles with little or no money down.

6. Debit cards are a fact of life — don't fight them, instead focus on their proper use. Insist kids record all transactions and then reconcile them with the bank statement at the end of the month. Don't allow withdrawals from ATMs that charge a fee. If they ignore you, take the card away for a month. And do not allow savings accounts to be attached to debit cards. If children or teens overspend, they should bear the consequences of card refusal and overdraft charges.

7. By adolescence, make sure your child has a clothing allowance. Giving them money quarterly for the basics (excluding coats, boots and shoes) is a good system. Shopping with them as they spend their own money teaches them how to budget. If they wipe out their entire quarterly allotment with a single purchase, so be it.

8. Discuss with children the difference between wants and needs. This is the Achilles heel of our times. Try this: When your children lust after something, offer to pay a percentage if they wait two months. Amazingly, the desire often disappears.

9. Involve the kids in family spending. Yeah, yeah, it's boring and the computer, iPod, TV beckons. Give each child some financial responsibility. It could be helping you with comparison shopping. Most kids love this because finding the cheaper price is like a game. It could be coupon clipping for their favourite cereal. Get creative.

10. Start your children investing. Even Canada Savings Bonds, purchased inside an RESP, are a lesson in making your money grow. It is too expensive to buy small quantities of shares, but mutual funds purchased quarterly introduce them to the notion of long-term investing. Losing money when the market dips isn't such a bad thing when the stakes are low. And since the market goes up more than it goes down, if you have chosen a good, low-risk fund they will watch it recover.

11. Encourage parents and grandparents to cut back on the Christmas and birthday presents and deposit money in an RESP instead.

12. Read statements in paper form or online with your kids. It only takes a few minutes to cast your eye over their bank statement and RESP statement but the process teaches children the importance of that money management habit. They will learn what the acronyms mean, what interest, debit, credit, withdrawal and deposit refer to. They will also learn how to spot fees and penalties. As a result, they won't be intimidated by the process when they get out on their own. That's gold for the later years.

13. DO NOT BAIL THEM OUT. Financial bailouts that begin in adolescence translate into financial dependence later on. If they have spent all their Christmas money and they still have presents to buy ... too bad. Make something — bake cookies, paint a picture.

14. Let your kids know early on that they will be participating in the funding of their education. There is no reason why a child can't pay for a quarter to a third of their own education, even more if post-secondary includes community college or university in their hometown.

15. Consider a year or two of working before beginning post-secondary studies. A period of employment first teaches them a universe of valuable skills. Today's students run the gamut of young, old, part-time and full-time so there is no stigma involved in waiting. On the other hand, a post-grad life with minimum debt spells freedom. You want to spend a year hanging out in Asia? No problem — if there are no student loans to pay.

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Finally, you can follow every suggestion religiously but some kids still won't get it easily. However, if you lay down the essentials of good money management early, chances of your children reaching 30 without being overwhelmed by debt are far, far higher.