Steve and Pamela Cromity possess all the trappings of upper-middle-class comfort. They own a home in Lansdowne, Pennsylvania; a time-share in Kissimmee, Florida; and employ a nanny to care for their son and daughter, Steve III, 12, and Christina, 10. For the Cromitys, the key to the good life isn't the couple's annual $150,000 income, although it certainly helps. The entire family avoids impulse purchases, they say. And when they do buy something, they bargain shop. What separates Steve, Pamela, and their children from most Americans of any economic level is a strict adherence to proper money management. The Cromitys make every effort to never pay full price for anything. Last October, for instance, Steve paid $100 for a refurbished iPhone, when the retail price was $399. For Pamela's birthday in September, he bought her a pre-owned iPhone from AT&T for only $50. And when the couple wanted to upgrade from a 32-inch to a 50-inch flat-screen television, they decided not to pay full price or use credit to buy it. It took a year and a half before they found a TV they wanted at a price they were willing to pay. In the end, they spent $750 for an $1,100 television. "I believe in delayed gratification. You don't get things that you want automatically, you wait until the time is right,†says Steve, 43, a staff architect and business development manager who earns $72,000 a year plus bonuses. "Everything that we get seems sweeter because we get it at a discount.†Steve and Pamela apply the same approach to debt. "We have a substantial income but we still have to be conscious of every dollar, because we know it's very easy to get ahead of yourself,†says Steve who pays more than the minimum payment each month on his debt. After Pamela received an M.B.A. in 1990 and Steve got an M.A. in 1993, they owed $70,000 in student loans. They have paid off all but $1,000. They plan to be rid of all debt, including their mortgage and home equity loan, in 15 years. The Cromitys are teaching their children to enjoy the finer things in life while not paying top dollar. "We want to always have plenty, but we still want our children to know what it is to sacrifice,†says Steve. They also want the children to live graciously and give generously, says Pamela, 43, a senior pharmaceutical sales representative who brings home $67,000 plus $10,000 in bonuses. So far, Steve III and Christina are following their parents' lead. They each get $5 a week for allowance and bonuses of up to $20 per activity when they excel in academics or sports. Instead of spending his money on video games or clothing, Steve III saves it. Over the last year he has put away more than $300. "That is a significant amount of money for someone his age,†says his father. "He buys one thing that he really wants, but he will always reserve a considerable amount of cash.†He will even ask what chores he can do around the house to earn more money, says Steve. Even at age 10, Christina also understands the value of thrift. She keeps a cache of coupons for clothing stores and avoids paying full price, just like her father. "I think my children know that there is a time when they can get the things they want because they've saved, they've been frugal, and they made an effort,†says Steve. "They've learned to make whatever dollars they have go further.†The notion of giving to others also plays an important role in how the Cromitys raise their children. Since 1990, Steve and Pamela have helped to fund scholarships that enhance cultural diversity at their alma mater, Pennsylvania State University. The couple also thinks it's important that their children see them give money in church every week. THE CROMITYS' ADVICE Talk about money. Children learn money habits from their parents. Talk to them about the money decisions you make and why you make them. "My kids see how my wife and I are a team, we don't just do things off-the-cuff,†says Steve. "We communicate with each other constantly about money.†The Jump$tart Coalition for Personal Financial Literacy (www.jumpstartcoalition.org) is a great place to go for resources that will help your children learn more about money management. Teach your children how to budget. Spending can be a thrill, but being broke is downright depressing. Teach your children how to manage their income and cash outlays. "We want them to learn now so that later on when they get older and they have to do it on their own, it is not as difficult,†says Pamela. Show children how rewarding it is to stay within their financial boundaries and not to accrue debt. While grocery shopping, make lists and set a financial limit, says Pamela. Have the children help you try to stay below that limit. Make budgeting fun by purchasing a financial game. The board game Moneywise Kids (www.talicor.com; $20) teaches children how money works as well as how to make and manage a household budget. Show children how to be charitable. Let your children accompany you as you do volunteer work, and show them financial statements confirming donations you have made. "It's important that they see me giving whenever possible in whatever form it takes,†says Steve. Also put them in the practice of giving. Don't allow your children to accumulate things or be wasteful, Steve advises. Teach them to donate to charity toys and clothes that they have outgrown. This article originally appeared in the March 2010 issue of Black Enterprise magazine.