Most adults rank the word “budget” right up there with dental work and cleaning the oven as most unfavorite task. Like trying to stay on a diet, almost every adult has struggled at one time or another to live within a budget.

As the economy continues to spiral downward, budgeting will become an ever-essential skill.

I like to think of a budget not as an instrument of torture, but as a kind of road map, an organizing plan that gets you from here to your financial goal down the road.

I tell my children that "a good budget enables you to pay for what you need and save up for what you want." As a parent, I feel that budgeting strongly encourages a youngster of any age to face the consequences of spending money, and to discipline the urge we all have for instant gratification.

Spending usually comes more naturally to most children than saving. Saving money is a habit that youngsters must be taught -- just like brushing their teeth or doing their homework.

The 4-Jar System

Pay your child an allowance in units of change - coins and bills - so the total can be divided easily.

The next thing you'll need is 4 plastic jars or clear plastic pouches for each child, plus labels. Children like to see and count their money. Label each jar so your children can easily tell where to put their money.

Charity Jar

The first jar is the Charity Jar. Count out 10% of your child's allowance and have the child put this into the Charity Jar. Charitable giving is a subject close to my heart and something I have emphasized to my children since they were young. It is also a cornerstone of Minyanville. It is a lesson with great impact on a child or young adult. And, again, it is an opportunity for you to impart your personal values to your youngster. We are part of a greater community and it is our responsibility to help people who are not as fortunate.

Charitable donations can be made in many ways, from giving to a homeless person on the street (a powerful visual lesson to a child, seeing that there are those obviously less fortunate), to giving to a specific charity that you help your child to pick out.

This topic of giving is very important and "giving" is not just monetary. Later, you will teach your child the joy of volunteerism and giving themselves.

Next: Quick Cash Jar