Holiday season is here. With it come the emotional strains of trying to pick appropriate gifts for your loved ones, while trying to stay within some type of a budget. Some Bermudian residents may be in tougher economic times than others, due to the seasonal slowdown of the hospitality industry and related business.

The stress is particularly magnified when you have children who want - whether they admit it or not - to be like every other child, and receive the latest in DVDs, video games, and so on.

For the older child, peer pressure is a huge factor, and the cost of their Christmas wish list is equally as large.

Their wants tend to be magnified and reinforced by the media, blatant and mercenary as it can be in the selling of the perfect image.

When you are in the vulnerable adolescent years, where sense of confidence and self-worth are still being developed, perception, readers, is everything.

Not many of us have forgotten how it felt to not fit in because we didn't have the 'right' outfit.

Children can figure out the money game long before they can add or subtract.

In one story, a four-year-old greets Daddy at the door with the proverbial, "Hi Daddy, did you have a good day at work?" And then asked, "Did you get the money?" I feel that Dads in families may have a particularly hard time with the demands of Christmas.

If their family is of modest means, they may feel that it reflects badly on them that they cannot provide the latest in electronic gadgetry for the holidays.

In the measure of a man, they may feel somehow diminished.

What we need to remind ourselves of, is that it is not always the gift as much as it is the shared experience of enjoying it with someone that you care about.

Your child will want to buy gifts for others as well.

Help him/her understand the concept of earned money, instituting a series of jobs that even a young child can do.

Pay them for it.

Open a savings account for them and offer to match any amounts that they put into savings, rather than spending.

Show them how to set up a budget if they want to save for a special toy.

Even a very young child can use a system of four jars, labelled, TODAY, TOMORROW, A LONG TIME AWAY and gifts. Purchase Quicken.

A seven year old and up can soon figure out how interest is calculated on their savings.

Don't have a computer?

Involve the entire family in saving to buy one, however, long it takes then get it.

Teaching money values is not easy to do. In a survey conducted on the website www.ihatefinancialplanning.com, more than 45 percent of adults polled stated that no one had taught them how to handle their finances.

They basically learned by failing and trying again.

There are hundreds of free Websites devoted to finance for children.

The standout of the bunch for you, the parent and the child is www.MSmoney.com.

It is a superb deeply detailed six-step process that details building a money knowledge base from the age of three onward.

It has wonderful links to other Websites, including two simulated stock market games.

Don't know much about stocks? You have a great opportunity to discover an entirely new finance world, right along with your child.

Above all, whether you are a parent, an aunt, an uncle, a grandparent, keep in mind that you are also imparting your values to this precious child.

The experience of learning about money and the self-fulfilment and respect that comes from providing for your self and your loved ones will leave a lasting impression on that child, long, long after the plastic toy or electronic game is broken.

Websites

http://www.msmoney.com/seminars/seminar4/html/Step6/creating_a_financial_plan.asp

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http://www.bigchange.com/ Earning a weekly allowance is fast, fun and easy when you earn Diditz instead of cash. Earn Diditz for doing chores and checking them off on your To-Do List, referring friends, answering polls, and viewing tips. Manage Diditz with personalised bank statements and the option to save Diditz to earn interest or share Diditz by giving to charities.

http://www.younginvestor.com/flash/ An animated website for some simple money games and a way to get warmed up for a stock market simulation game. http://www.fleetkids.com/BuyLo $ellHi Game - Great for young children because of the multimedia elements on this website. Kids start with $5,000. They have 12 months (or, well, 12 turns) to invest that money in the Buylo stock market. They search for clues in the news, follow the market, play some hunches, and make their money grow as much as they can.

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A Penny Saved is a Penny at 4.7% Earned There are lots of ways to receive income, and lots of ways to spend it. In this EconomicsMinute you will develop two budgets, or plans, to help you decide how to allocate your income.

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http://www.smgww.org/ older children. The Stock Market Game™ (SMG) - The original and premier educational program that stimulates learning about economics, finance, and the American economic system. This 20 year program is primarily used by students in grades 4 through 12, post-secondary students, and others who want to learn more about investing and managing their financial future. An exciting, real-world simulation, The Stock Market Game enables participants to discover the risks and rewards involved in decision-making, the sources and uses of capital and other related economic concepts.

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lMartha Harris Myron CPA CFP™ is a Bermudian, a Certified Financial Planner™(US license) practitioner and VP, Personal Financial Services, Bank of Bermuda. She holds a NASD Series 7 license, is a former US tax practitioner, and is the winner 2001-The Bermudian Magazine - Best of Bermuda Gold Award for Investment Advice. Confidential Email can be directed to marthamyron@northrock.bm

The article expresses the opinion of the author alone, and not necessarily that of Bank of Bermuda. Under no circumstances is this advice to be taken as a recommendation to buy or sell investment products or as a promotion for financial plans.