Step One

As soon as your kids can count, introduce them to money. Observation and repetition are two important ways children learn. Looking for teachable moments while shopping, having them count coins or finding a fun container for them to save coins in are all great ways to start.

Step Two

As they grow, communicate with kids about values concerning money — how to save it, how to make it grow, and most importantly, how to spend it wisely.

Step Three

Setting goals is fundamental to learning the value of money and saving. Young or old, people rarely reach goals they haven't set. Nearly every toy or other item children ask their parents to buy them can become the object of a goal-setting session. Such goal-setting helps children learn to become responsible for themselves.

Step Four

Take children to open their own savings accounts. Beginning the regular savings habit early is one of the keys to savings success.

Step Five

Celebrate their success! When a child saves for a much anticipated item, or makes another wise financial move (such as finding a coupon, waiting until an item goes on sale, putting extra money in savings), celebrate their success.