But with the country in a recession, Donna and her husband (Dalyn's stepfather), Dexter, 36, feel an urgency to change Dalyn's spendthrift ways - and, frankly, their own as well. "We've been extravagant with our kids and with ourselves," says Donna. "Now we're readjusting."

For one, they've put a stop to shopping binges and instituted a $20 weekly allowance for Dalyn, and $3 weekly for her 6-year-old sister, Desmyn. The change hasn't been too tough on Desmyn, who isn't yet beating a path to the local mall. But for Dalyn this strange new thing called a budget isn't much fun. "It's hard," she says. "It's like we were shopping, shopping, shopping - then we just stopped."

The Kornegays are one of many families reacquainting themselves with a small yet powerful word: no. No to over-the-top birthday parties, no to another iPod to replace the one you lost, no to letting a kid take your credit card to J. Crew.

In a recent Money survey, 54% of parents admitted that their kids have too much stuff. Similarly, more than half said that because of the economic crisis, they would spend less on their kids for years to come. In short, the stock market correction may lead to a correction in the financial values with which we raise our kids.

"Parents are seeing the shortcomings of giving children everything they want," says Nathan Dungan, financial coach and author of "Prodigal Sons and Material Girls." For one thing, it's costly to cater to a child's every whim - a cost that's harder to bear in an economy of anxiety. But also, by overindulging, you risk raising kids who don't understand the value of a dollar or gain the skills necessary to handle life off the parental payroll. And that can lead to bad habits - like credit card reliance - later on.

Ready to join the wave of parents who are changing their ways? Well, be prepared: Getting kids, especially teens, to accept a new - less indulgent - reality can be a challenge. The following strategies can help you face it:

Escape the parent trap