Parents always want their children to succeed, but the new Parents, Kids & Money Survey from mutual fund company T. Rowe Price shows many parents are “unrealistically optimistic” about their children’s financial future.  This over-confidence can result in behavior that ignores the long-term strategies and financial discipline required for kids to achieve financial success.

Most parents (73 percent) say they regularly talk to their kids about money issues – and that’s good. It’s what they’re talking about that concerns T. Rowe Price senior financial planner Stuart Ritter.

“These conversations are focused almost exclusively on short-term goals, such as back-to-school shopping or family vacations,” he said.

Kids and parents aren’t dealing with long-term family goals – like saving for college.

“Even with younger children it’s important for them to understand that there are longer-term goals and that planning for them requires making decisions today,” Ritter said. “This needs to be in the mix of the priorities and trade-offs the family is making.”

And it’s not just talk. They survey found that more parents save for vacation (46 percent) than for college (41 percent). And less than two-thirds talk to their children about how their college education will be paid for.

A surprising finding:  14 percent of the parents stated they discourage their kids from talking about money.

Ritter, a father of three young children, believes it’s critical to explain how the financial world works. Explain how bank accounts work. Explain the pros and cons of using a credit card. Explain how to save for that first car.

“Recognize that your kids are learning about money whether you’re talking about it or not,” Ritter told me. “They observe what’s going on … and they’re likely to come away with a lot of misconceptions and incorrect conclusions without the input and guidance that a parent can provide.”

His advice: Take advantage of everyday teachable moments to discuss how money works. Ritter believes this is critically important if your kids are going to develop the financial skills they will need.

Another key finding:  A third of the parents surveyed said their biggest financial regret is overextending themselves financially.

The survey shows that many parents are not covering the basics needed to create a secure financial future for their families:

• 50 percent do not save regularly for retirement
• 48 percent do not have emergency savings
• 54 percent do not have life insurance
• 74 percent do not have an up-to-date will

Nearly all of the kids surveyed (97 percent) said they learn their money habits from their parents. That’s hard to do when mom and dad don’t agree on the right way to handle money matters.

Nearly half the parents (47 percent) said that when it comes to family finances they don’t always see eye-to-eye, and the kids are picking up on that. Forty-four percent said they know their parents disagree about money issues.

“If the parents can’t agree, the kids don’t know what to make of that,” Ritter said. “They’ll be confused by that confusion and it will prevent them from learning what they need to know about making good money decisions.”

To help families talk about money, T. Rowe Price just launched MoneyConfidentKids.com which can be used by parents and educators. The site includes online games parents can use to start a conversation with their kids. They’ve also created an interactive game called The Great Piggy Bank Adventure.

Resources for Parents:

The Jump$tart Coalition for Personal Financial Literacy

The Mint: Money Talk with the Kids

PBS Kids: It’s My Life – Money

Schwab: MoneyWise

Herb Weisbaum is The ConsumerMan. Follow him on Facebook and Twitter or visit The ConsumerMan website. 

You scrimped and saved, built a business, managed your growing fortune wisely. Now, according to studies of the super-rich and the merely wealthy alike, you have one overwhelming concern: How do get your well-off children or grandchildren to think more like you?

Relax: Your kids are probably getting these financial lessons of life on the Internet.

A host of digital entrepreneurs, banks and investment firms are building web and mobile platforms that educate youngsters about money—teaching grade-schoolers how to earn and save for things they want, middle-schoolers how to pay rent and college students how to trade stocks.

The trend is known as "gamification" because the learning comes through computer-game simulations of real-world financial events. Children adopt the personas of college grads getting their first apartment, young moms on a tight budget or small business owners. They pay for groceries and clothes, balance checking accounts and save for big-ticket items.

According to financial educators, gamification is designed not only to teach basic concepts but also to start conversations that let parents instill financial values in their offspring—or, often, to catch up with what kind of economic decisions their kids are already making.

"They have money already," said Eileen Reid, a middle-school family and consumer science teacher in Howard County, Md. "They are getting cellphones and dealing with which plan costs what. They are very aware of their lifestyle." Their parents are the ones who are uncomfortable talking about money, said Reid, whose own financial upbringing was of the "Do you think money grows on trees?" variety.

In her classroom, Reid uses a computer program called JA Finance Park Virtual, a collaboration of Capital One and the nonprofit organization Junior Achievement, to cement lessons she teaches from the blackboard.

"It's an eye-opener for them," she said. "They realize they can't afford what they want their [virtual] children to have. They want $120 tennis shoes, so they have to figure out how to pay for it."

Questions about sneakers quickly become discussions about how money represents priorities, Reid said. "What do you value? Is it really important to give to a charity? Should I continue with my education?" she said. "It's fascinating to watch them come to life when we get to the virtual experience."

The game, used in 468 schools nationwide, has been part of the curriculum at Maryland schools since 2010, after the financial crisis had made business leaders aware of the widespread ignorance about how mortgages, credit cards and other basic financial instruments work.

"The business community started going to the state legislature and said , 'We have to get people more literate,' " Reid said.

Other parents aren't waiting for schools to start the conversation.

Monica Giles, a hairstylist in Denver, has been using the accounting tool Tykoon.com with her 6- and 8-year-old boys. Giles and her husband set up profiles on the site listing household chores and the allowance paid for each task. The boys set savings goal, and fill their online shopping carts with toys and other treasures they hope to buy.

Tykoon turns parent-child "I want this!" battles into conversations about financial responsibility, Giles said. "When you're out shopping, you can turn it back on them," she said. "I ask them, 'Well, do you have enough Tykoon money?' "

Though Tykoon awards kids virtual "coins" for achieving their goals, the money they earn for chores is real—"from the Bank of Mom and Dad," said Mark Bruinooge, a former Bank of America executive who developed the site with The Lending Tree founder Doug Lebda, with help from family therapists.

At first, Giles said, she wanted her kids to see and use physical money. But as transactions become increasingly digital, she said, "kids need to realize that when you see the number on the screen go down, what they have left is real money, and you decide what to move over to savings and what you spend. It's a good transition to banks."

Of course, that's precisely what the companies promoting gamification are counting on.

When Tykoon is fully operational, it will be offered free to users if they link their account with the site to a partner bank. (An unlinked Tykoon subscription will cost $4.95 a month.) As families mingle their Tykoon activities with real savings accounts, "banks can build brand equity with the family," Bruinooge said.

The banks hope gamification will not only attract future customers but help convert them to using online services, which are cheaper to provide than in-person interactions. In Europe, where banks adopted gamification earlier than their American counterparts, there are games for adults as well as children—all aimed squarely at promoting web banking.

Some see educating the next generation about money as too serious to be left to games.

"Our viewpoint is that investment is a serious activity, and should not be driven by amusements," said Nicole Sherrod, managing director of TD Ameritrade's trading group. "We are investing in the knowledge of today's youth, as they are the clients of tomorrow."

For the past two years, the company has made its online trading platform, Think or Swim, available to students at 60 high schools and colleges across the country. The educational version comes with a play trading account with $100,000 in "paper money"—what others in the finance education business call virtual cash.

"They learn about the stock market using the same platform that their parents are trading on," Sherrod said. "It bridges the gap between academics and reality."

That gap is closed altogether at the University of Idaho. For the past seven years, finance students at the Moscow campus have used Think or Swim to build on a $1 million endowment to the state school by trader Rotchford Barker.

In a prerequisite course called Market Trading Strategies, students familiarize themselves with the program and trade using the system's paper money. In Trading 2, the 15 or so students in the Barker Capital Management Group make consensus decisions about investments and implement them using real money.

"We invest in all sorts of asset classes—equities, bonds, futures, derivatives" using "the gamut of investing ideas," said Mat Schaefer, a senior and chief investment officer of the group. The largest amount Schaefer recalls investing in one day is $100,000, and he says they haven't lost money in any semester. "We're not going really for radical growth. The main thing were learning is risk management."

While it's exciting to get a big winner, Schaefer added, the group's main concern is "to have money around for future students."For those worried about what's going to happen to their hard-earned money, it's the best lesson their children could learn.

More from CNBC:

How the student loan crisis is draging down home prices

Baby Boomers have a lot of bills to pay these days. Most of those bills aren’t theirs.

They’re helping to pay medical and utility bills for their aging parents, and even buying groceries for their moms and dads. And on the flip side, they’re chipping in for everything from car insurance to rent payments for adult kids they thought flew the nest.

All these handouts are creating uncertainty among the boomers about what the future holds for their own financial well-being, according to a report by Ameriprise Financial released this week. 

The study, titled “Money Across Generations,” surveyed more than 1,000 affluent boomers, 300 parents of boomers, and 300 children of boomers, at least 18 years old, by telephone, and found tougher economic times all around for every generation. But the Baby Boom generation of about 77 million and born roughly between 1946 to 1964 is stuck between a family rock and an economic hard place. 

“Boomers are feeling the pressure financially and emotionally,” said Suzanna de Baca, vice president of wealth strategies at Ameriprise Financial. “In many cases they’re sandwiched between children who are unemployed or struggling to pay down their student loan debt and aging parents who are facing complex health and financial issues. At the same time, they’re trying to prepare for their own retirement.”

About a quarter of boomers surveyed said they were saving for retirement, compared to 44 percent who were doing that in 2007, the last time this poll was taken.

And  because of the financial pull from both parents and kids, twice as many boomers are focusing on clinging to the retirement funds they already have, up from 12 percent in 2007.

“Family and personal values are important when making any kind of decision, but it can be difficult to prioritize our family members’ needs against our own,” de Baca said. “Unfortunately, unconditional financial support can threaten or even sabotage retirement goals and security. It’s important to have open conversations with your family about your current financial situation and evaluate your ability to meet your own goals before offering any kind of support.”

Here are some more findings from the study on what boomers are doling out:

• 58 percent of boomers reported helping parents in some way with purchasing groceries (22 percent) or paying medical expenses (15 percent) and utility bills (14 percent).
• 93 percent said they provided financial support for their adult kids, including college tuition or loans (71 percent), allowed them to move home and live rent-free (55 percent) or helped them buy a car (53 percent) and auto insurance (45 percent).
• 34 percent said providing financial assistance to their kids has slowed down their contributions to retirement savings, and 10 percent said aiding parents is keeping them from squirreling away.

While most boomers don’t regret backing their adult kids financially, they’re not sure all this financial handholding has helped their offspring prepare for the future. Nearly half of those polled said, “they worry that their children do not understand what it takes financially to prepare for retirement, and 35 percent express concern that their children have not learned responsibility when it comes to money.”

Is it time to cut the kids off?

Related stories:

 Delaying retirement for our families
 Gen Y’s upbeat thanks to mom and dad
 Moving in with your parents isn’t that bad 

Today Money financial expert David Bach joined us for a live Web chat Wednesday to answer your questions.

Here’s one of his answers to questions from the live chat. (See below for the full Q&A and video of David’s TV appearance this morning.)

Janine asked:

“Just came into enough money to pay off all debt. Should I pay off and quit job I hate and start home based business? Or save? I am 56 and husband would continue working.”

David replied:

“Janine, how nice to come into some money. Send some my way...just kidding! I am all for paying down the debt. Paying down the debt will give you the ultimate freedom. Don't quit your day job however, start your home based business from home in the morning and at night and get it going before you quit your day job (even if you hate it). You are very young, and having that cash flow from your job is huge it will help you fund your next business.”

Here’s the full chat archive and David’s TV appearance:

If you have a question for our TODAY Money experts, submit it here.

To sign up for an e-mail reminder for our next chat, click here.

TODAY Money financial expert Sharon Epperson joined us for a live Web chat Wednesday to answer your questions.

Here’s one of her answers to questions from the live chat. (See below for the full Q&A and video of Sharon’s TV appearance this morning.)

Shawn asked:

"Hi Sharon. What do you think of gold as an investment for the common person. I've watched you for years reporting on CNBC report on the commodities market and I was curious if you thought the average person should invest in precious metals. Thanks!"

Sharon replied:

“I enjoy reporting about gold and commodities every day for CNBC and I do believe it is important to have a diverse mix of stocks, bonds and alternative assets in one's portfolio. Gold can be a part of that alternative mix -- say 5-10-% of your portfolio. A great way to get into gold, as you've heard me mention on the air, is an exchange-traded fund like the GLD or IAU. I also think you can get exposure to gold in some large cap mutual funds that invest in gold mining stocks. See more ways to invest in gold here.”

Here’s the full chat archive and Sharon’s TV appearance:

If you have a question for our TODAY Money experts, submit it here. 

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AP

Gas is among the expenses that may be pinching families these days.

Your bills seem to be going up, and yet you seem to be bringing in less money. Sound familiar?

You don't have to be unemployed to feel the nation's economic squeeze. Several recent economic reports have pointed to the difficulties even those who have held on to their jobs are facing.

The Bureau of Economic Analysis reported last month that personal income fell very slightly in August, meaning that overall people earned slightly less than they had in July.

Despite that drop, however, consumer spending rose a bit in August as Americans were hammered by higher prices for food and gas.

On Wednesday, the government said that consumers once again likely paid more for food and gas last month, as compared to the previous month. But consumer prices for everything else rose only very slightly in September.

The reports are discouraging because they come after years of tough economic times. Median income has fallen 6.4 percent since 2007 after adjusting for inflation. A deep recession that officially lasted from December 2007 until June 2009  has been followed by a sluggish economic recovery and a high unemployment rate hovering around 9 percent.

A story in the latest issue of Bloomberg Businessweek compares the state of working Americans today to those in the 1960s, when  household debt was low, savings were high and salaries were on the upswing.

Cut to today and the case of Tamra Loomis, a 32-year-old single mom who earns $17 an hour but has to cut corners where she can, using coupons, growing vegetables and even using her parents’ Internet connection instead of paying for her own.

“At this point, I’m paycheck to paycheck,” Loomis told the magazine. “A lot of people aren’t hiring, and when they are, they offer even less than what I make.”

Related:

Living paycheck to paycheck, or worse

Frugal food: Protein that doesn’t kill your pocketbook

Today Money financial expert Carmen Wong Ulrich joined us for a live Web chat Wednesday to answer your questions.

Here’s one of her answers to questions from the live chat. (See below for the full Q&A and video of Carmen’s TV appearance this morning.)

Becky asked:

“My boyfriend and I both work as design/web development freelancers. We've been doing so for 4 years, and our taxes are increasingly higher. I was wondering if it would be better for our clients and our taxes if we would incorporate.”

Carmen replied:

“Becky - Oh YES! Definitely form an LLC with your boyfriend (if you're ready to make that sort of commitment, ahem!). Or, even a corp on your own where you get paid through the corp rather than personally. There are some upfront costs but you'll recoup that in your first year in tax savings. Good luck!”

Here are links to the full chat archive and Carmen’s TV appearance:

If you have a question for our TODAY Money experts, submit it here.

To sign up for an e-mail reminder for our next chat, click here.

Today Money financial expert David Bach joined us for a live Web chat Wednesday to answer your questions.

Here’s one of his answers to questions from the live chat. (See below for the full Q&A and video of David’s TV appearance this morning.)

One chat guest asked:

“Hi David, Where do you stand on the debate between paying off your mortgage early vs. getting a big, long mortgage, never paying it off and using the extra money to invest?”

David replied:

“Love this question. I think you are better off to pay that mortgage off early. Less debt means more freedom. I wrote a new book this year called Debt Free For Life, and the entire goal and mission of this book is to help you buy back your freedom. Paying off your home early can save you tens of thousands of dollars in interest, and often upwards of six figures if you have a big mortgage. Good luck!”

Here’s the full chat archive and David’s TV appearance:

If you have a question for our TODAY Money experts, submit it here.

To sign up for an e-mail reminder for our next chat, click here.

Today Money financial expert Carmen Wong Ulrich joined us for a live Web chat Wednesday to answer your questions.

Here’s one of her answers to questions from the live chat. (See below for the full Q&A and video of Carmen’s TV appearance this morning.)

John asked:

“I have two mortgages, crushing credit card and loan debt, and my daughter is starting college in the fall via subsidized, unsubsidized, PLUS loans and some scholarship. Would it be smart to use my $150k in my 401(k) to get rid of a big chunk of this debt? I'm 53.”

Carmen replied:

“Oh John, Nooooo! Pretty please don't touch that 401k. Even in bankruptcy that money is protected. Continue to protect it. That's your future. Plus, if you just pull the funds you'll end up losing nearly 1/2 to taxes and penalties. Instead, let your daughter keep on what she's doing and you can focus on your debt. Have you talked to a non-profit credit counselor? Do that (go to NFCC.org) and see what your options are. But, promise me to keep that 401k right where it is ;-)”

Here’s the full chat archive and Carmen’s TV appearance:

If you have a question for our TODAY Money experts, submit it here. 

To sign up for an e-mail reminder for our next chat, click here.

TODAY Money financial expert Jean Chatzky joined us for a live Web chat Wednesday to answer your questions.

Here’s one of her answers to questions from the live chat. (See below for the full Q&A and video of Jean’s appearance on TODAY Wednesday morning.)

Laura asked:

“Since the market dropped, I cut back on my contribution to my 401K. Do you think it's a good idea to contribute to an IRA or a Roth IRA with any extra money I have?”

Jean replied:

“I don’t understand why you would do that. A 401(k), typically, is an account where you are allowed to invest the money in a menu of choices. You could move the money around -- but not contributing doesn't make sense to me. Also, the fall in the market is precisely the wrong reason to scale back contributions (unless you need the money in the short term), it's a way to buy low so that later you can sell high.”

Here’s the full chat archive:

If you have a question for our TODAY Money experts, submit it here.

To sign up for an e-mail reminder for our next chat, click here.