It's never too early to start talking to your kids about money. Get in the habit of explaining personal experiences, mistakes, and how you handled them according to your child's ability to understand. Children as young as 3 years old can learn to identify coins and numbers on dollar bills. Reinforce the idea of trading or exchanging money for goods. Show your older child when you handle money, either by writing checks, giving real money, or charging.

Encourage savings in a piggy bank, special container, or real bank account after a certain amount is saved. Open a separate account for your child with a separate passbook so that he figures out how to handle bank transactions and can watch the money grow. Require your child to save a portion of gifts or allowance to ensure financial growth. (Keep the bank book in a safe place where you can monitor its use. You don't want a dog-eared, page-ripped-out version, and you don't want to lose proof of savings.)