National Financial Literacy Month begins on April 1, and many parents are taking the opportunity to speak to their children about being financially savvy before heading to college in today’s economy.

Having those first conversations with children regarding spending on tuition and making out a budget can be challenging.

"Number one is, don’t keep your child in the dark about finances,” said Adam Carroll, Chief Education Officer with National Financial Educators. 

“Throw the whole money taboo out the window. It’s okay to discuss what insurance costs. What parents need to arm their children with are realistic costs that they will be faced with when they get out of the house and get out of school,” Carroll said.

To help parents address finances with their children, Chase Card Services has joined College Parents of America to put together a check list called “Parents, Teens, and Money: A Clear and Simple Guide to Discussing Financial Responsibility.” The guide addresses use of credit cards and the ins and outs of banking services and loans, as well as budgeting and identity theft.

“You want parents to have the tools they are comfortable with to start this conversation,” said Kathy Witsil, General Manager for Chase Card Services. “These points are a good place to start so a parent doesn’t have to explain the entire financial system.”

Witsil, who is soon to send her own son to college this fall, said that the guide was meant to provide conversation starters for parents speaking to students headed out on their own.

But should parents sit down and have an “official” conversation with kids to address financial literacy?

“It’s a combination of having a serious detailed conversation about what responsibility is and dropping hints and having little mini-conversations when spending opportunities come up,” said Carroll.

The junior high and high school set is still fairly insulated from a down economy, because those kids are still watching extravagant shows like “Pimp My Ride,” so it’s extremely important to let them know the financial pressures the down economy is putting on the family, said Carroll.

Above all, parents with kids headed to college should make sure they are having open and honest conversations with their children about the next financial steps, Witsil said.

“The kids are watching the news and talking about saving money, but as a parent you want them to succeed on their own,” she said.

Parents should be prepared that kids will be tempted with credit card applications and what seems like “free money” around every turn, and if there is no responsibility there, they will soon find themselves in a very deep hole.

“My rule is: if you can eat it, drink it or wear it, it doesn’t need to go on your credit card,” Carroll said.