Being a parent means also setting good examples in a lot of things. This is especially true if you’re dealing with kids between the ages of 7 to 17. You need to be cautious about your language, your action, your diet, and even the way you handle Money.

If you didn’t grow up in a household where money is strictly regulated, that could be a good or a bad thing; good because you’ve learned to manage your money independently, and bad because you’re not sure how to raise your kids to be financially conscious.

Children as early as three years old already understand the concept of saving and spending. According to Sasha Jacob, renowned financial advisor and CEO of Jacob Capital Management Inc., kids at the age as early as seven can already develop a money habit.

But of course, they learn this from none other than their parents. Although starting with a piggy bank is good, it shouldn’t end there. You should also focus on teaching other tips or strategies to avoid making mistakes. Developing your kids’ money habits help them establish a well-founded financial base.

Sasha Jacob provides tips on teaching your kids to establish good money habits.

1. Set a good example.

Kids tend to do what they see grown-ups do. Since they’re very observant, they can quickly adapt and absorb your actions simply by just watching.

It’s best to model a good financial behavior by showing positive financial habits every day. Start by buying them individual piggy banks so they’ll be able to save their excess allowance or the change they get. You should also shop together, set a budget, use coupons and look around for discounts, shop at thrift stores, etc.

If you could, get your kids involved in some financial decisions you make. This way, they can learn from experience.

2. Save for the future.

The concept of saving often comes to us before we hit college or upon landing our first job. It can be challenging to implement even as an adult. In the case of children, it can be just as challenging as they become attracted to new things they can get their hands on.

Once you’ve developed their saving habit to a piggy bank and see some progress, it’s time to take it to the next level. Open a savings account for your child which they should contribute to every week. Then show them their progress every month. Doing so will motivate them to save and will even willingly increase their contributions.

3. Get them involved.

Kids learn better in during interaction. Sasha Jacob says it is best to teach kids complex concept once you get them involved.

Bring them to you when you go grocery shopping and show them how you budget expenses around the house. Letting them take charge of the shopping list also allows you to know your children better. Encourage them to choose the best products, based on quality and value.

Although budgeting should be left to the adults, it’s still important to let them be a part of it. After all, you’re planning not just for your monthly expenses, but for the whole family as well. Success in finances greatly depends on your ability to budget. Practicing it at an early age allows kids to make mistakes and learn from them according to financial advisor Sasha Jacob.

4. Let them wait before buying what they want.

The hardest thing about growing up is having so many demands and not having enough resources to supply them. Let your kids know they can’t always get what they want. But when they badly want something, they should save up for it.

Parents should always help their kids in picking out things they want, especially if it’s something expensive. Give them some time to think if they need it. One of the common money mistakes we make is impulse buying. So instead of supporting them to buy the things they want then and there, it’s always helpful to allow them some time to think to avoid any regret.

One of the worst ways of teaching children is by making them think they need to master something immediately. Apart from being highly-unlikely to happen, it also discourages them to achieve what they’ve wanted in the first place.

Kids are bound to make mistakes, it’s all part of learning. So even if you know your child is about to waste his money, let them buy what they want. Sasha Jacob as a leader thinks this might teach them a lesson. If they think they’ve made a mistake, motivate them to make a better choice the next time. Not only did they learn from their past financial decision, but they’re also having fun in the process.