Editor’s note: This is a transcript of the audio file.

Most parents have caved in to their kids at some point when it comes to spending money.

Parents want their kids to be happy, so this is natural. But a pattern of indulgence and overspending can leave you broke and your kid in debt from poor money habits. I’m Janet Stauble with your Bankrate.com Personal Finance Minute.

Kids face pressure at school to have the same electronics, clothes and cars that their friends’ parents buy. But giving in to pressure to keep up with the Joneses leads kids to expect a standard of living they may not be able to maintain later in life.

Encourage your kids to work so they can spring for life’s luxuries, and share your goals and financial plan with them so they understand the things you value more than keeping up appearances.

Maybe your child’s heart is set on going to a “dream school” or a high-end college. Look at what you can do financially and communicate that number clearly from the get-go.

Is your kid getting married? Put your own retirement needs ahead of overspending on a one-day celebration.

Want to learn more? Log onto Bankrate.com. I’m Janet Stauble.