Educating clients may be one of the most important things you do as an advisor. Not only is it the right thing to do, it helps you stand out and can increase your value in the eyes of your clients.

But when it comes to client education, the key issue of kids and money is often overlooked.

Parents and grandparents desperately need tools to teach today's children about making sound financial choices. That is why helping clients talk to their children and grandchildren about money has the potential to help you build stronger relationships and truly help your clients.

Too many financial advisors focus primarily on investing, ignoring their clients' broader planning concerns. Helping clients effectively teach their children about managing money shows that you are a different kind of advisor, focused on a comprehensive and caring approach.

This is also an excellent way to build connections with multiple generations of family and to enhance your relationships with clients by connecting with them on a deeper, more emotional level.

Financial results come from the small decisions we make and actions we take each day compounded over time. Parents need to help their children learn to prioritize and make good financial choices, as well as help them learn from their mistakes, so they can lead happy, accomplished lives.

Here are some tips for you to share with clients to help them teach their children (especially those between the critical ages of 4 and 13) to make better financial decisions.

1. Commit to being your child's no.1 financial teacher.

Parents are the most influential financial role models their children will ever have. However, the majority of parents don't feel confident teaching their children about finances and often avoid the topic or lie about it. Parents must realize that no one else will embrace this important role to become their children's primary financial teacher.

2. Start early in childhood
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From the time they are toddlers, children begin learning about money through observations and modelling -- whether their parents are proactively teaching financial lessons or not. Getting an early start is critical to developing good self-control with spending habits, which is a key factor in future financial success.

3. Look for everyday teaching opportunities.

When questions or other learning opportunities arise, whether at the grocery store, the gas station, or during dinner, parents should seize the opportunity to use these everyday situations to teach their children about money. Small lessons during everyday life can have a significant long-term effect.

4. Tell stories and teach valuable lessons from mistakes.

Telling stories, whether personal or fictional, helps to create visual images and emotions that enhance memory and learning. Telling personal stories of past financial mistakes (and letting children make mistakes themselves) can lead to valuable life lessons, and allows them to learn and grow from their mistakes.

5. Encourage creative entrepreneurial thinking.

Parents should give their children opportunities to problem solve. If they want to buy an item they don't have enough money for, ask them to suggest ways that they may be able to earn the extra money. If they are determined to get the item, they will take action to earn and save for it.

6. Set goals.

Goal setting is a key factor for life success. As children work toward specific goals, they learn the action steps necessary to achieve those goals. Parents need to give their children the opportunity to set and achieve small goals so they are inspired and feel confident in pursuing their bigger dreams.

7. Provide financial tools.

Wish lists, file folders, tracking sheets, and other financial tools help decision-making and organization. They also encourage children to keep track of their expenses.

8. Use cash.

Especially with young children, it is essential to use cash and avoid credit or debit cards. They need tangible, visual experiences with money to truly understand the "exchange." Not only will it help your child's numeric skills, but it will also prepare them more effectively to use debit and credit cards in a responsible manner.

9. Provide a "mini" allowance.

At around age five or six, parents should give a small amount of money to their children each week (about $1 per year of age a week) so they can learn to manage it. If they want to earn more to buy something specific, they need to work to earn the extra money. This method encourages hard work, responsibility and goal setting, while also ensuring the child gets consistent practice managing money each week. However, specific expectations must be set so children know what the allowance must cover and what it doesn't.

10. Divide all Income into categories: give, invest, save, spend (GISS).

The GISS Method of Money Management teaches the different ways money can be used and is one of the most powerful wealth building habits a child can develop. It is simple, hands-on, effective and encourages good financial habits. Children should give 10 percent of their money to worthy causes or organizations, which encourages them to be thoughtful and kind, and also allows them to feel a sense of empowerment and self-esteem. They should invest 15 percent to understand the importance of growing your funds in order to save for the long-term future. They should save 25 percent for more expensive items that they have set goals to achieve, which helps develop self-control. Finally, children should spend 50% of their money, which allows them to consider the cost and value of things, as well as learn that their actions have consequences.

11. Avoid the nine mistakes parents often make.

    Assuming someone else will teach your child about money.
    Consistently talking negatively about money or not talking about finances at all.
    Assuming you have to be a mathematical genius or investment wizard to teach your kids great financial skills.
    Teaching children how to only be spenders.
    Making mindless, unplanned purchases.
    Overindulging children with goods and "stuff."
    Getting upset at a child's decision and not identifying the lesson within the mistake.
    Giving stock "Yes" or "No" answers to save time.
    Going to the mall as a regular pastime.

Finally, be sure to communicate to your clients this simple lesson:  "Children are always watching and learning. Consider the values you are communicating before you open your wallet."

J. William G. Chettle is chief marketing officer for Loring Ward, which provides turnkey asset management services and practice management support to financial advisors. Nancy Phillip is founder and president of DollarSmartKids Enterprises. For The Parents Guide to Kids and Money, visit www.loringward.com.