Healthy money habits can be inherited from one generation to the next. Sometimes that isn’t the case depending on your parents’ relationship with money and how they valued a dollar. However, if you are planning on having children or looking to get your children on a path to financial success, it all starts with you.

Practical Ways to Teach Preschoolers and Kindergartners About Money  
Introducing financial concepts can be both fun and educational. Here are some practical methods:

• Incorporate money-related activities into playtime by setting up a pretend store where children can buy and sell items using play money.
• Assign age-appropriate chores and offer a small allowance for completing them.
• Provide children with a piggy bank where they can set their savings to the side.
• Take them to open their first savings account and allow them to make the deposit.

Effective Strategies for Elementary and Middle Schoolers
Elementary and middle schoolers can benefit from more advanced financial concepts. Here are some effective strategies:

• Encourage and help children create a budget by allocating their allowance for saving, spending and giving. Have them set financial goals, such as saving for a game or toy.
• Develop more age-appropriate chores and have them continue to learn the value of hard work and the responsibility of managing their finances.
• Teach children to differentiate between essential items (needs) and non-essential items (wants). This helps them make mindful spending decisions and avoid impulsive purchases.

Guiding Teenagers Towards Financial Responsibility
As teenagers gain financial independence, it’s crucial to equip them with knowledge and skills for informed decision making. Here are some key areas of focus:

• Teach teens to create a budget, set financial goals and allocate funds for different expenses.
• Educate teenagers about how credit works, building a good credit history and the potential consequences of missing payments. Teach them about interest rates, credit scores and responsible credit card use to avoid excessive debt.
• Explain the benefits of early and consistent investing. Teach teenagers about different investment options like certificate of deposits, stocks, bonds and mutual funds to broaden their financial knowledge.

Parents play a crucial role in shaping children’s financial behaviors. When you model healthy money habits, you set a solid foundation for their financial well-being. Taking the time to involve children in family budgeting discussions will brighten their knowledge and deepen their understanding. First Savings Bank offers First Step Savings accounts, which provides parents access to control the account, but allows children to make their own deposits and watch as their savings grow.