1) Start Talking About Money from a Young Age
While it may seem too soon to talk to your kids about finances, avoiding the subject can actually make them less prepared for being financially responsible.
"In the name of not wanting their children to develop a sense of entitlement, parents don't speak about money," says Dr. Richard Orlando, founder and CEO of Legacy Capitals. "As a result, the rising generation won't be ready to successfully handle their eventual inheritance. They'll have a sudden-wealth experience, similar to a lottery winner."
By starting to talk with your children about money from an early age, you can introduce these important topics over time. Even a piggy bank sectioned into fun spending, short-term goals and long-term goals can be an effective way to teach financial basics. Allowances are also a great way to introduce budgeting, regardless of how much wealth your family may have.