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2. Tell Them Stories About Saving and Investing Money

Kids learn from stories, so tell them that good financial moral. Talk about the time you saved money to buy your first car or the story of how you bought the house you now live in, with a simple explanation of how a mortgage works. Ask them why they want to save money. Now is a good time to start telling stories that can help to explain how the stock market works: When you buy a piece of a company, you get part of everything the company earns. Simple examples will drive the point home: if you give your child money to buy lemons and sugar for a lemonade stand, they will give you 25 cents for every cup of lemonade they sell.

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