(CNN) Debit cards, credit cards, saving and borrowing money – you probably learned a lot of what you know about personal finance from your own life experiences.

Teach Your Kids About Money Early

You have a great opportunity to teach your children about money management before they learn it the hard way. Many of us were never taught about saving, budgeting, or spending wisely when we were young.

When I was a child, the only financial advice I got from my parents was, “If you want that, save up your money.” It was great advice, but not very detailed.

I often wish my parents had explained how to save and spend money wisely, and how to stay free from debt. These lessons could have saved me from many financial mistakes.

Start Early — It’s Never Too Soon

As soon as your kids can count, you can begin introducing them to the concept of money. The earlier they learn, the better their financial habits will be.

Here are some simple, practical ways to teach kids about money, saving, and spending responsibly.

1. Teach the Difference Between Wants and Needs

Help your children understand the difference between what they need and what they want.
Even adults struggle with this sometimes! For example, I often think, “I really need that new part for my car.” Thankfully, my wife reminds me what a need really is.

2. Set Savings Goals

This is where my father’s advice comes in handy: “If you want it, save up your money and buy it.”
The key word here is your. Kids value things more when they use their own money to buy them.

When your child asks for a toy or gadget, use it as a teaching moment. Help them set a savings goal. Show them how saving a little each week can help them buy what they want — without borrowing.

3. Teach Smart Spending Habits

Let kids make their own spending choices, but discuss the pros and cons before they buy anything.
Teach them how to compare prices, wait for discounts, and research before spending.
This builds critical thinking and helps them learn from both good and bad decisions.

4. Talk About Advertising

Kids are surrounded by ads that make everything look amazing.
Discuss the commercials they see and ask:

• Will it really work as advertised?

• Is it worth the price?

• Is there a cheaper alternative?

Teach them that if something sounds too good to be true, it probably is.

5. Explain Credit and Debt

Talk about how credit cards work. When you use one, explain why you used it, how you’ll pay it back, and what fees or interest apply.
This helps kids understand that credit is not “free money.”

6. Create a Family 401(k)

Make saving fun by starting a family 401(k).
Match every dollar your child saves in their bank account. Show them how their savings grow on the monthly statement.
Set strict rules for withdrawals to teach long-term discipline.

Be the Example They Follow

Children learn by observing their parents. If you’re living with debt and poor credit, that becomes their idea of “normal.”

But if you’re working to fix your finances, share that process with them. Let them see how you’re budgeting, saving, and paying off debt.

You’ll teach them that financial responsibility is a journey — one worth taking.

Build a Smarter Financial Future

Break the cycle. Teach your children the value of saving, smart spending, and staying out of debt.
By doing so, you’ll help them become responsible stewards of their financial future — and give them lessons that last a lifetime.