Last week I read an interesting article in the Wall Street Journal written by Jonathan Clements. I like most of the columns written by Clements, but occasionally I disagree with him. This article entitled, "Keeping Your Financial Footing at 22 — So You Can Buy That House at 32" was timely.

One of the important bits of advice hit home with me.

He wrote, "Don't expect to live like your parents. It took them 25 or 30 years in the work force to achieve their current standard of living. If you're eating out as often as they do or taking equally extravagant vacations, you're probably spending too much."

I think he hit the nail on the head.

Parents must take responsibility for the spending habits of their children. Without taking the time to educate their kids, they may unknowingly sabotage their kid's financial habits.

Using credit cards is a biggie. Most children see their parents "pull out the plastic" on hundreds of occasions.

They buy gas. Pay for eating out. Charge airline tickets to get the mileage credits and more.

Kids don't know that mom and dad may pay their balance off at the end of each month or at least we hope they do. Kids just see how simple it is to charge things.

Without explaining to children about how credit cards work, they might get the idea that all adults handle their expenses this way. It's easy. It's convenient. It's also sends a dangerous message to youngsters and young adults.

Mom and dad may have the income to support the credit card payoff, but junior may not.

My grandma used to say, "monkey see, monkey do." They see their parents do it, so they do it too.

What other spending messages do parents and grandparents send that may be misunderstood by their offspring?

Buying new cars may be one of them. Some families buy a new car just about as soon as the old one is paid off. What ever happened to keeping a car for five or 10 years?

It used to be easy to do the maintenance on cars with a screwdriver and timing light. Changing oil was a breeze. Rotating tires was a snap. Replacing light bulbs, fuses, and wiper blades was no big thing.

Not much of that going on today, but not a good excuse for constantly buying new. Arguably, some say that today's vehicles are better built than ever.

I know one fellow that trades his car in before he needs to replace the original set of tires. He thinks that expensive maintenance is looming right after the warranty runs out.

What message does this send to the younger set? "New or used car? New, absolutely. Used cars can cost a fortune to repair," is the message they hear.

I am not against new cars for youngsters and young adults, but what worries me is the cost. The cost usually includes payments with hefty interest charges.

The car purchase logic can then be extended to furniture, appliances, houses and many other "must" items.

The question asked by young adults is not how much an item costs, but how much a month are the payments. This can lead to financial nightmares.

Mom and dad's home may have all the bells and whistles. Junior's may think that he or she deserves the same. Owning a home with all the bonuses may have a big price tag and create undue stress on the young adult's budget.

Also, mom and dad have a gardener. Shouldn't we? Mom has a housekeeper. Shouldn't we? Mom gets her hair done every week. Shouldn't I? Dad gets a $30 haircut. Shouldn't I?

The message we send may not be intentional, but the way we spend our money does send a loud message to our offspring.

Again, don't get me wrong about spending.

Mom and dad may have worked long and hard to afford their luxuries. It is more about teaching the kids about how you got there and how you make financial decisions. It may just look too easy to them.

If you don't teach them, don't be surprised when they have financial troubles. Many parents are receiving the phone call from their young adult children inquiring about moving home for a while until they can "get back on their feet."

Here is where an "ounce of prevention" is better.

Notable Quote: "Being an optimist after you've got everything you want doesn't count." Kim Hubbard

Tom is a registered investment adviser and certified financial planner. If you have questions or topics, you may call or write Tom at 3358 Linda Mesa Way, Napa CA 94558 255-3721, fax 254-3939 or e-mail suntrm@aol.com