2) 7-9 years

Now for the next step to teach your kids, you need to give him/her some money to handle. Simultaneously teach them how to make spending decisions and to save as well. Make them bear the fiscal responsibility and teach them how to set short-term goals.

Educate them the virtue of envelops and for a start, buy him a piggy bank so that they can collect change over there. You can also start a weekly allowance for them. Ask them to maintain an envelope of the monetary gifts. Also differentiate the goods and bads for them so that they don’t waste their money.

And finally to make them financially disciplined, don’t offer an advance pay for what they want.

3) 10-12 years

This stage is very crucial for them as they need to make financial transactions. They must learn the value of money and set medium-term goals for them.

As a parent, what you can do is - open a bank account which will allow them to transact money. You can also lend them a job, like cleaning the garden or babysitting the young ones and pay for it as well. This will create a sense of employment as well responsibility in them. Make sure they don’t enter into the lending business and don’t end up lending money to his/her friends. Explain the significance of getting the money back.

Also Read: Top 5 Money Hacks of 2012