Imagine, for a moment, the person that graduates from college with a set financial plan; someone who understands the implications of debt and of how to properly manage and leverage debt. Imagine having the ability to make choices about when and how to spend discretionary money as opposed to having all discretionary spending sucked up into debt reduction. Imagine being able to plan for AND acquire that first house within the first five years of hitting the job market. Imagine making positive choices, savings, investing, and charitable giving. Imagine that all starting in Middle School.

Money Management skills are not acquired through osmosis. They are not learned by watching the consumerism that is displayed on television. They are not absorbed through iPod earbuds. No, rather, Money Management is a critical skill that must be taught thoughtfully, practiced meticulously and allowed to grow in strength and confidence. So, it is best started young, while the stakes are low, but the rewards are high and long lasting. This article will lay out the steps that each and every parent can take, regardless of income, to ensure that their child master basic money management principles. Using this program, parents can create a Certified Money Management Master (CM³) program specifically designed for their family situation.

The principles of CM³ are based upon one primaryassumption. That being: To implement this program, you will spend no more money on your children than you do today. You will simply gradually transfer responsibility for when and how that money is spent from the parent to the child. Over time, households unknowingly spend a certain amount of money on children that can be termed discretionary. Whether it is a pack of gum at the grocery store, a movie ticket or a gift for a friend’s birthday party; these are all decisions that traditionally, parents make without much thought or consent from their children. CM³ shifts the decisions about when and how to spend that discretionary money from parent to child. Over time, as your child matures and master individual components of CM³ more responsibility and more discretionary spending is moved from parent to child. The goal is to teach kids how to make good choices so that the decision regarding a pack of gum can mature to a decision about what stores to shop in for clothes, what charities to fund and how much to save.

The basic premise is that as children are younger, their choices and options are more limited. However, control of those choices must rest with the child. This teaches them independence in decision making and allows them to feel empowered on the road to financial freedom.