Teach your kids the major steps of money management and you will be helping them to become wealthy.

1. Make your kids LOVE to save money. Give them a weekly allowance. Don't make them save all of it , you are trying to teach them to budget. Make them save 10% of their allowance. Then set a goal together that they are saving towards. Like a new bike or doll. Make sure that the goal is reasonable. They will lose interest if it is going to take too long to reach the reward of their saving and hard work.

2. Nothing teaches a child the value of a dollar like having them work for it. Pay them extra for big chores like raking the yard, shoveling snow from the sidewalk, mowing, etc.

3. Make their money grow by adding "interest" to their savings. Like 5% a month on the money they have saved. For example - if they have 10.00 in their piggy bank at the end of the month you will add .50 ! Over time they will learn about compounding interest.

4. Give them freedom to spend. Teens, especially, should know the value of credit and how credit cards work. Maybe start out with a pre-paid debit card. Let older children have a bank account so they will learn about debit cards and how to use them.

Teaching your kids early will help them learn about money and credit. They will leave the house with an understanding of how money works and how they can use it and save it. Your children should be well on their way to riches.

Learn more about this author, Jennifer Cockerham.
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