Teach your children about financial responsibility.
It is smart to let one’s children know how much disposable income your family has, at an appropriate age. The age may vary with each child, but certainly when they begin asking questions about what they can have and cannot have and why. One terrific way to teach your children about finances is to have them help make limited choices.
One example from the article was a family that included the children in decisions about paying for their extracurricular activities. When the local ballet studio raised prices, just as her 12-year-old daughter was increasing her commitment to dance, a mother showed her daughter the bill. She gave her daughter the option of having one fewer lesson per week or cutting back elsewhere. Rather than reducing the number of lessons, her daughter started babysitting more and contributing money toward her pointe shoes.
I believe that this daughter is well on her way to financial literacy.