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Reward them for good grades. Offer to put some of the money they earn for grades into a mutual fund and then help them continue to contribute to the fund at the rate of at least $25 per month less than $1 per day. This is easily do-able for any teen. And it's a habit you want them to continue throughout college.

As they grow older, their demand for money will become greater cell phone subscriptions, new shoes, and the latest brand name clothes will tempt them. Don't make it easy for them to run out and spend. Let them know they can find ways to earn the money and you'll match what they put in to long term savings recall the "Fun Money this Month" jar and "Save for Something Big."

Help them recall the position of people who only spend are consumers while those who invest actually build for their future. Ask them again what position they want to be in.

As they enter college, protect your finances from their habits. If they have great habits terrific. But if they have bad money habits, don't let them make you feel guilty or feel obligated for fulfilling their wants.

If they're at home after high school or after college, then charge them "rent." We have a 19-year-old guardian who moved in with us at age 14. He's a senior in high school and we're charging him "rent" of $300 per month. The money he pays us goes in to a mutual fund set up for him. Make this arrangement with your son or daughter.

If our children work to become investors and not just consumers, our society will benefit in the long term since more families will be able to function from a position of financial wisdom and strength.

Learn more about this author, Don Simkovich.
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