On average, American households carry about $138,000 in debt.

If you’re in this boat and have a huge hole to dig out of, you’ll want to do so in a way that not only fixes your money for good, but also teaches your kids some valuable lessons.

No matter where your household stands financially, consider these steps so that your entire household prospers and learns.

Save Money And Plan For The Big Events

The main way to teach your kids to plan in advance and avoid financial shortfalls is to do it yourself.

If you haven’t yet saved up 3 to 6 months in an emergency savings fund, make this your main priority. You’ll wake up in a different state of mind everyday knowing that you’re not an overdraft away from disaster.

This may seem easier said than done if your credit is in the toilet and you’re living check to check, but beefing up your coffers will be the best decision you’ll make.

Credit problems are common, as in recent years, the average household had close to $9,000 in credit card debt. The best thing you can do is steer clear of bad credit lines and borrowing opportunities, and instead use cash and save money.

Get your kids in on it by challenging them to save allowance money. You need to teach your kids that money is a tool, not something to throw around frivolously. Set your kids up with their own bank account, add money to it regularly and go through the statements with them so they can keep track of how much money they have.

In the meantime, start saving for your kids’ college ASAP. There are countless savings models that will let you accrue interest slowly but surely, so that your child is all set once they turn 18. This also opens the door for conversations with your child that gear their minds toward the future.

Stay On Top Of Changes

If you want to teach your child to navigate finances, you need to be aware of what’s going on.

You grew up in a different financial and job market than your parents, and your kids will grow up in a different climate than you did.

Cryptocurrency is here to stay, so take on the challenge of learning about Bitcoin, Ethereum and the other heavy hitters. This way, you’ll pass information on to your kids and inspire them to be enterprising investors in their own right.

Don’t shy away from holding age appropriate learning sessions. YouTube is a wealth of info, and there are even kids with finance related channels that your child can relate to.

Make Your Kids Earn It

The best thing you can do is teach your child that every dollar must be earned.

Rather than just giving them allowance, make sure your child has jobs around the house so that they can earn their wages. Getting your child involved helps them both with their problem solving and lets them understand the world a bit more.

Now, when you get out of bed for work everyday, your child will understand the sacrifices that are made to feed them, clothe them, buy their toys and allow for family vacations.

It’s only natural that the more your child starts earning money, the more questions they’ll have about it. You’ll be able to teach them things like budgeting, borrowing money and planning for a long-term goal. This way, your child will have an understanding of services banks provide, personal loans and other issues that come about.

Consider these tips so that your entire family’s finances can grow.