(ARA) – Children are great imitators, and when it comes to money, having a good presentation of financial well-being at a young age can quickly grow into a lifetime of practicing good money management.

“In my work over the last 22 years at Northwestern Mutual, I’ve had the good fortune to be part of many initiatives designed to teach kids about money basics,” says Meridee Maynard, senior vice president at Northwestern Mutual. “I’ve witnessed how, when kids are exposed to solid financial management principles, it prepares them to make informed decisions as adults, and makes them more likely to avoid the devastating consequences that come from financial mismanagement.”

Over the years, Northwestern Mutual has conducted a number of studies on financial literacy. One of the key findings is that kids’ financial savvy and money habits don’t come from celebrities, friends, media or even teachers – it’s parents who have the most influence on the way children save and spend. Surprisingly, even teens actively absorb the way Mom and Dad pinch pennies or make mistakes with money.

But one financial area parents aren’t actively leading by example is in donations to charity, according to a survey released by the Northwestern Mutual Foundation’s financial literacy website, Themint.org.

When asked, “Do you know what organizations or causes your family donates money or time to?” most children 17 and younger said either, “I’m not aware of their giving at all” or “I know my parents give back, but I’m not sure how or to whom.” Only 23 percent said, “My parents talk about the organizations and causes they support.”

Having parents proactively modeling and discussing their giving strategies would be a great learning opportunity for their children, Maynard says.

Children also responded they didn’t know how their parents supported charities. Only 18 percent said their parents donate time and energy by volunteering, and 10 percent said their parents donate money.

If parents don’t discuss their charitable intentions with their children, a valuable learning opportunity is lost. Planning how to give is just as important as the planning that goes into saving, spending and investing. These are early lessons that can help young people become financially savvy adults. After all, financial literacy today makes financial security possible tomorrow.

Tips for modeling your charitable outlook

This is a perfect time for you as a parent to assess how you’re modeling and explaining charitable giving to your kids in the context of the family’s overall financial security plan, and to establish a giving budget for 2011. Of course, if you make charitable donations all year long, those present additional teaching opportunities as well.

Engaging children in financial matters doesn’t have to be complicated; there are many simple things you can do. For example, you might consider the following.

* Involve kids in conversations about your charitable giving. Develop giving goals as a family. Choose a charity to financially support together. Model – and explain – how the family will budget to meet its giving goal.

* Show them that money isn’t just for spending. Help kids start a four-bank system with compartments for saving, spending, investing and giving.

* Encourage children to develop realistic personal giving goals to support a cause in which they believe.

* Add fun into the process. For example, if your family decides to use its giving budget to buy toys for a program that distributes presents to disadvantaged children during the holidays, involve your children in the shopping for those toys.

* Explain to teens the concept of tax benefits related to charitable contributions to organizations such as The Salvation Army or Goodwill.

“Kids who are taught about the importance of giving as well as budgeting responsibly for giving are better prepared to secure their own financial futures. And I believe that is one of the most lasting legacies you can provide for your children,” Maynard says.