Teaching your child about money requires time, patience and a willingness to let the kid make mistakes.

There is no single “talk” about money. Instead, it’s an on-going process pegged to your child’s understanding and needs that unfolds over years.

Your example is key at all stages, a basic point some parents overlook or ignore. Expect more than few questions about personal finance when your kid is about to start college or recently married and dreaming about buying a house.

Even with the best intentions, there are many pitfalls along the way.

Here are tips on how to avoid five common mistakes when teaching your kids about money.

No Strings
We all want the best for our kids, but giving money to them as they demand it with no strings is a horrendous mistake. You need to teach your kids how to budget and how to set priorities – that’s the point of an allowance. Otherwise, the kids will view you as a convenient ATM with an endless supply of money.

Bailing Kids Out
Be sure to set spending guidelines for your child, and stick to them. If your child makes a mistake, tough. Bailing the kid out rewards bad behavior and teaches nothing. If your child is older and really blows it, advance money as needed for school, and set up a regular repayment schedule – with interest.

No Records
You can’t develop a sound budget if you don’t track your spending. A child can learn accounting basics using a piece of loose-leaf paper with a red line drawn down the middle. Label the left side “Allowance” and the right side “Spending.” Review this regularly with your child and make it more sophisticated as understanding and needs grow. When your child is in college, there’s no reason you can’t exchange spreadsheets via e-mail each month.

No Increased Responsibility
It’s a mistake to boost your child’s allowance without increasing responsibilities. It therefore makes no sense to give your child $50 a week in high school unless the kid is going to be responsible for clothes, school materials and, say, personal grooming supplies. This is open to negotiation and responsibilities should increase as your child matures.

No Savings Plan
Don’t let your child think money exists only to be spent. Explain the importance of saving and set up a savings plan. Open a savings account when your child is old enough to understand compound interest. Within established guidelines, allow a small portion of the savings to be used for special things from time-to-time.