Children learn by observation. The early years are the best times to instill basic values about money. Help children know the difference between needs and wants. This will prepare them for good spending decisions in the future. Give children the experience of setting goals that take money to buy.
Goal setting helps children learn to become responsible for their own futures.
Take children on a field trip to the bank or credit union. Have the teller answer children's questions about why financial institutions exist and why opening a savings account is a smart move. Use the grocery store as a laboratory for learning wise spending. Plan spending before you go, then compare cost and quality before purchasing. Adapted from materials by the National Center for Financial Education, San Francisco.