Good budgeting is key to your young adult effectively managing their own personal finances while away at college, working full-time but still living at home, or about to live on their own and be financially independent. Encouraging your young adult to develop a budget helps them become more accountable for their own finances. Because as a parent, your goal is to teach your young adult to achieve a healthy balance between Money In & Money Out.

Here are 10 GiveMe20 Tips for helping your young adult learn about basic budgeting –

Show Me The Money! First, they should spend 1-2 months keeping a money diary–writing down every purchase, even the smallest expense. With their expenses down on paper, they can see where their money is going, and what spending habits need to change. Record-keeping must be as specific as possible. If you are helping them prepare a budget for their first year at college, the college orientation program often can provide good information to get you started. (click here for the GiveMe20 spending record spreadsheet).

After the Tracking. After keeping their money diary, suggest they make a list of potential cutbacks–areas where they can get by with spending less. Help them make adjustments each month as they discover what works, and what doesn't.

Control Impulse Buying. Encourage your young adult to think spending decisions through, rather than impulsively buying items right away. Show them how comparing prices or waiting for an item to go on sale can save money.

Addressing Shortfalls. To help them address budget shortfalls, suggest ways they can earn more money, or cut back on expenses, such as renting a DVD to watch with friends rather than go to the movies; or maybe car pooling through the week to save on gas for the weekend.

Needs vs. Wants. Counsel then how to modify a budget by categorizing expenses as needs (expenses that are unavoidable) and wants (expenses that could be cut if necessary).

No Bail Outs. It's very important to resist being their financial savior. If he or she can depend on you to come up with all the extra cash, they may never fully learn to manage money wisely. But at the same time, don't be preachy and judgmental–no doubt he or she will make spending mistakes along the way. They need to know they can always come to you for information, support, and advice.

Some rapid-fire, quick tips–advise your young adult to:

- Resist impulse buys
- Don't go shopping with friends who spend a lot
- Tote their lunch to school (or work) as much as possible
- Stay away from vending machines and convenience stores
- Only visit an ATM once a week (plan ahead for needed cash)
- Entertain at home

These simple budgeting lessons can last a lifetime. Never stop working with him or her on how to use money. They will be much better prepared to function in the real world.

When you more time, here's some other great resources:

The Secrets of Money: A Guide for Everyone on Practical Financial Literacy
Teenvestor: The Practical Investment Guide for Teens and their Parents