Teach the basics of financial literacy to give your tot a solid foundation for the future. Begin with a visit to work. Let your child see your job and what you do on a typical day, if even for an hour. Talk about what you do and that you will get paid for your hard work. When your paycheck arrives, or when you have an opportunity to deposit a check, let your child go to the bank with you and explain what you are doing—depositing or putting the money you earned into your bank account, very similar to his or her piggy bank (see The Money Tree activity). Once the money is deposited, explain that your bank card helps you withdrawal, or take money out of the bank, even if you are at the ATM machine. Explain how debit or credit cards are similar and that you MUST have money in your account so you can use the card. And once the money runs out, the card will no longer work.
Include them in grocery, household shopping and other activities that illustrate the examples of money being added to the bank or withdrawn. If possible, start a savings account for your child and let them play an active role in handling that money.
JTB strongly recommends financial literacy programs for youngsters like the camps at Young Americans Center for Financial Education in Denver, Colorado: http://www.yacenter.org/repository/Entrepreneurs/Simple%20Business%20Plan.pdf