If you’re a parent, you play a crucial role in the financial development and protection of your children. This starts at birth but can continue into their adult lives. Since that may seem like a daunting task, we’ve identified steps you can take to help your kids financially throughout their lives.

Teens say parents influence the way they save and spend more than celebrities, TV shows, teachers and even their friends, according to a new poll by the Northwestern Mutual Foundation’s financial literacy website.

So are you leading by example? If you’re like most parents, you haven’t done enough to educate and model to your kids the importance of properly managing their money or protecting against the risks of becoming disabled or dying.

Since April is Financial Literacy Month, whether you have young or adult children, it’s a great time to evaluate whether you’ve taken the steps necessary to protect your kids financially, as well as to ensure they’re financially literate so they can make wise decisions about their money.

1. Teach your kids how to manage their money. To help your kids to grow into financially responsible adults, talk to them frequently about money management and model good financial behavior, including budgeting, investing, and long-term planning. Also, use resources like www.TheMint.org, which helps kids learn how to manage their money wisely.
   
   
2. Protect against life’s risks. One reason to buy life insurance or disability income insurance is to replace the financial support your children would lose if you were to unexpectedly die or become disabled. Since each product helps to replace a portion of your lost earned income, maintain your family’s current lifestyle and fund goals like a college education, make sure you have adequate coverage in place.
   
   
3. Create a will. If you and your spouse die without a will, a state court judge will not only appoint a guardian for your minor children but also decide how to distribute your assets among your heirs in accordance with state law. If you have a large estate and fail to protect it from federal estate taxes, you could end up forfeiting tens or even hundreds of thousands of dollars to the IRS that otherwise could have enriched the lives of your children.
   
   
4. Set up a trust. By designating your children as the beneficiaries, a trust provides protection of the assets you plan to leave to them if you die. There are several different kinds of trusts, which if properly drafted, provide significant tax benefits. For example, with an irrevocable life insurance trust, you can avoid estate taxes on life insurance proceeds because the policy isn’t included in the estate. In addition, there are many non-tax reasons for having a trust, especially when your trust beneficiaries are too young, or otherwise unable, to manage the proceeds themselves.
   
   
5. Contribute to a tax-sheltered education savings plan. College costs continue to rise at a rapid rate so consider college saving plans such as a Coverdell Education Savings Account, Section 529 plans or UGMA and UTMA custodial accounts to fund your child’s education. These programs allow you to save money for your children’s education, while also providing tax benefits.
   
   
6. Plan for your retirement. Set a good example for your children by having a strategy in place for your own financial future. You can fund your retirement through vehicles like a 401(k), Individual Retirement Account (IRA) or deferred annuities. By using a trusteed IRA, you can exercise control over how and when the distributions are made to your kids after your death. For example, you could specify that your beneficiary will receive only the minimum required distribution each year, and distributions in excess of these amounts may only be made to provide for health, education or support.
   
   
7. Invest in long-term care coverage. Since the cost of a long-term care event can quickly deplete your life savings, if you would like to leave an inheritance for your children, you should consider purchasing long-term coverage. In addition to helping offset your expenses, it can also give your children the confidence that you’ll get care when you need it, allowing them to focus on you, not the care giving.
   
   
8. Give the gift of financial confidence. If you have adult children, consider giving them the gift of a session or multiple sessions with a financial representative during which they can develop their own financial security plan. This gift will help ensure they learn the skills they need to be financially savvy and responsible throughout their lives.