Financial savvy starts at a young age. The sooner your children master effective spending and saving habits the better off they will be later in life.
Here are six tips you can use to teach kids about money and managing finances: 
Teach by Example
Children learn by example. If you spend money carelessly your children are more likely to do the same. Be cautious of how you speak about money and treat finances in front of your children. Your tone and spending habits will likely influence them.
Don’t Use Money as a Reward or Punishment
Money is not something children (or adults) should feel they deserve as a result of behavior. Teaching your child to associate work and money — rather than expectations and money — helps them gain financial independence.
Give Children an Allowance
An allowance should be earned not expected. Don’t give your kids money for daily chores considered the bare minimum like making a bed. Give extra tasks to earn an allowance and teach them how to budget it. For expensive items they should save. Extra spending money on top of an allowance is discouraged.
Encourage Older Teens to Get a Job
Teens understand the value of money when they see how difficult it is to earn. Consider reducing or eliminating allowance at a certain age to encourage your teen to find a part-time job. A job outside the home teaches responsibility discipline and time management.
Open a Savings Account
Help your children open savings accounts in their own names. They will learn banking basics and can watch their accounts grow or shrink based on their money management. Discuss the importance of saving for unexpected needs which encourages them to establish an emergency fund later in life.
Take Your Kids Shopping
Use shopping trips as opportunities to teach your kids budgeting evaluating sales and using coupons. Create a shopping list and budget and enlist your child’s help in prioritizing and making purchasing decisions.
For additional tips on teaching kids about money check out our financial lesson plans developed for students in grades 1 through 5.
