Teach your children well, so they won't go through their parents' hell: A financial primer for kids

It's times like these when we can learn a lot from "Gilligan's Island," not only about resourcefulness but also about how to stay out of financial trouble.

How is that, you ask? Hark ye back to the castaways' musical version of Hamlet, where the Skipper, playing Polonius, sang (to the tune of the "Toreador Song" from "Carmen"):

Neither a borrower nor a lender be,
Do not forget: Stay out of debt.
Think twice, and take this good advice from me,
Guard that old solvency.
There’s just one other thing you ought to do,
To thine own self be true.

Following are some additional tips to share with your children, to help keep them out of debt. (Grownups could also profit from them.)

* Do not spend more than you make or have.

* Do not count your money -- or spend it -- until it is actually in your bank (or brokerage or money market) account.

* Do not borrow money unless you are sure you can pay it back, with interest.

* Do not borrow more than you absolutely need, if you have to borrow it at all.

* If or when you get a credit card, pay off your balance in full each month.

* If you buy a house, make sure you can put down at least 10 percent of the purchase price and earn or have three times the monthly mortgage payment. If you can't do/afford that, rent.

* Make sure you have enough money saved so if or when something bad happens (you lose your job or can't work), you will be okay for at least six months financially -- or longer, like eight to 12 months, if you are supporting a spouse and/or children.

* Remember those less fortunate and give to charity. It doesn't have to be much, especially when your children are young, but it's a great habit to start early.

I am sure there are many other good tips. And if you would like to share your common sense financial tips for staying out of trouble, feel free to do so in a comment. These are just the ones I recently shared with my daughter after explaining the current market meltdown (though the market rebounded today), what a mortgage is and why so many people are in trouble because of some bad ones, and the tight credit market we are experiencing. Quite a lot for a 10-year-old to absorb -- even for us reasonably financially savvy fortysomethings.