When we were kids, we were taught to "save for a rainy day." Now that those rainy days are here, what financial lessons should today's parents be teaching their kids?

"Today's turbulent economy affects everyone - even grade-schoolers," says Anthony Hudson, a financial center manager at Fifth Third Bank. "Children talk about current events in school. And the more they learn about today's economy and how it affects families, the better off they'll be as adults."

Young Bankers Club
Hudson participates in a Fifth Third outreach program that teaches financial literacy to Cincinnati-area fifth-graders. "The Young Bankers Club is a 12-week program where we discuss savings and checking accounts, the importance of saving and budgeting, and how to use credit wisely," Hudson explains.

"A favorite part of the program is the virtual shopping spree," he continues. "Students get to buy clothes, cars and even a house. They also get to buy stock and, at the end of the program, they can see how much they would have earned or lost."

• Tips to guide parents
• Hudson encourages parents to use everyday experiences when teaching their children about money. Here are some of his recommendations:
• Teach children the value of work. By offering children an allowance for doing chores around the house, children learn how money is earned.
• Teach children the difference between "wants" and "needs." "Many children think that cable TV and brand-name athletic shoes are essential," Hudson explains. "But children need to be taught that basic needs include food, clothing, shelter and transportation. Before you can buy other things, it's important to make sure your budget can handle all the basic needs first."
• Stress the importance of saving. By helping children open a minor savings account, kids can see how money grows over time or how it can be saved for special purchases.
• Talk to your kids when your financial situation changes. If a parent loses a job or faces that possibility, it's important to tell your child what's happening - in a manner they understand. It's also helpful to remind children that the economy has been fluctuating for generations and people have always survived.

"I regularly see how teaching kids about money early on pays off," he continues. "When college-age kids come into the bank, and they already have a general understanding of banking and credit, they typically enter adulthood on a better financial footing - which can often lead to better car loan and mortgage rates. And this adds up to big savings over a lifetime."

For more tips on talking to kids about money, contact Fifth Third at (866) 475-4201 or visit 53.com.