It is never too early or too late to teach your kids about money. If you don’t talk to your kids about money, it can lead to bad habits and bad habits can stay with them for a lifetime — possibly leading to bad money decisions down the road.

Kids need to know the difference between their wants and needs. Teach your kids to be smart shoppers. Explain to them why you bought something that you needed on sale at the grocery store. And because you did, you will have extra money left over for other things.

Show your kids how their money can grow and earn interest just by being in the bank. Teach them about compound interest. Explain to them if they put their birthday money, holiday money and even their tooth fairy money into a compound interest savings account they are not just earning money on the principle, but on the entire amount as the account grows and earns interest. Explain to them that they will be earning interest on their interest without having to do anything!

By teaching your kids the importance of financial independence, you may learn a few things yourself.