The best way for parents to keep their children from running into financial trouble as adults is to teach them good money management skills at a young age.

Palouse area bankers, financial advisers and business professors say kids are ready to learn basic financial lessons earlier than parents might think.

"There is plenty of advice out there that I've seen that says the earlier, the better," said David Whidbee, a professor in Washington State University's College of Business.

Kids in the lower elementary school grades are usually ready to manage a small allowance.

"I think everybody learns better by doing," he said. "If a child has the responsibility of an allowance, you have to decide 'am I going to spend it, or am I going to save it?' I don't think there's any right or wrong answer. Probably ideally, they'd do a little of both."

Saving money

Many young children spend their money on the first thing they want. Defining a goal, such as a toy that costs more than they have right now, can inspire kids to save, Whidbee said.

Bill Skavdahl, manager of Washington Mutual's Pullman branch, said parents should resist the urge to automatically buy children things they want, and instead suggest their kids save for certain items.

Helping children save also is a good tactic, Skavdahl said.

"If they say they want a bike, say 'if you save $100, I'll throw in $100.' "

Having children do chores to earn their money also may help them think more carefully before they spend it, he said.

Budgeting

If kids begin regularly keeping track of how much money they receive and spend at an early age, the habit is more likely to stick when they become adults, Whidbee said.

Young people should remember to "pay themselves," Skavdahl said. Planning to set a certain set amount aside from every allowance or paycheck is the easiest way to save.

Investing

By middle school, most kids can grasp the concept of investing -- earning interest on money or receiving profits from a company they own a fraction of, said Jeff Feuerstein, senior financial adviser with Waddell and Reed in Pullman.

Though minors can't own securities, parents can set up a variety of different types of investments for kids and involve them in the process, Feuerstein said.

"Don't presume kids won't understand it or aren't interested," he said. In the case of stocks, parents can invest for their children in companies that make products kids are interested in, he said.

Responsible borrowing

Teenagers and college students are often targeted by credit card marketers and can be susceptible to getting into trouble with cards, Whidbee said.

Parents should know how their children intend to use a card before co-signing for those under 18, he said. If it is for emergencies, kids should resist using it for anything else.

If it is for purchases, they should make sure they can pay it off immediately, he said. A debit card might be a wiser choice for some teenagers.

Whidbee said young people should know that they can easily rack up debt and credit problems if they don't pay off their cards each month.

"If you don't manage it well, it's going to haunt you for years to come," he said.