This post was underwritten by BMO Harris Bank, which offers a matching $25 on a new savings account opened for your child through their Helpful Steps for Parents program. Learn more at bmoharris.com/parents

How do you know when it’s time to teach your children about money, and more importantly, how to be responsible with money? Probably about the time they become aware of it. When your tot clutches a wrinkled up dollar in his chubby hand to wait in line to buy an ice cream cone, your child understands how money works…you barter with money, you trade this many dollars for this much stuff. It’s time to teach your kids about being responsible with money and how to save money.

Once your children become aware of what money is and what it does, it’s a great time to also teach them the value of a dollar. I don’t think children should ever be burdened with their parents’ financial issues, but they should be aware of what we were all taught growing up- money doesn’t grow on trees. Money is earned, and after you are paid, you budget your money for different things. First you pay your bills, then you put some money aside in savings for a rainy day, and what is left is what can be spent. Sometimes it may be a little, sometimes a lot, and sometimes nothing at all, so saving up for a rainy day is very important.

Tips For Teaching Children About Money

1. For smaller children- explain to them what you are doing when you pay bills or at a register, and teach them about change, different forms of payment, etc. Allow them to hand over and accept money to make them more interested as well.

2. Give them an allowance- it will be your child’s first lesson in budgeting and saving. They will learn to budget for the different things they want and save up for big things they want, as well as teach them patience when it comes to making and saving money.

3. Teach children about saving long term. If they want a new bike next year, they should try to save $3 a week starting now. This will teach them about long-term budgeting and saving up money for big purchases in life.

4. Teach children about saving for a rainy day– some money should be saved on the side for emergencies. A child isn’t responsible for paying for emergencies, but it’s still an important concept to learn.

5. Bring your child to the bank with you (better yet, open an account together) and teach them to put in money each week. This is money you should never touch, or it will discourage them from saving as well as prevent a sense of pride as they watch their money grow. Over the years, as they watch their investment multiply, they can look forward to using it for big purchases they want, such as a class trip, first car, etc.

6. If they really want to work and make money, allow them to do age-appropriate jobs. Small children can hold a supervised lemonade stand, and teenagers can babysit during daylight hours, for example. They will have pride in the money they earn and likely be much more careful when spending it.

7. Teach children to only buy things they can afford. They shouldn’t borrow money or charge a toy and have to pay for it for a long time to come, with interest. If there is something they really want and can’t afford yet, they will learn to save (and parents can certainly help out great kids who work hard to save up money by splitting the cost with them).

Teaching your children about money is a gift that will benefit them throughout their lifetime, so make it a priority to spend time teaching your child about money, as well as being a good example of how to be responsible with money yourself.

I was selected for this sponsorship by the Clever Girls Collective. To learn more about BMO Harris Bank, visit their website http://bmoharris.com/parents