Leave your kids the vital legacy of sound financial literacy.

In an era where easy credit meets instant gratification, kids have more money and “stuff” than ever before. Our increasing reliance on technology means children ask for and use gadgets with hefty price tags and user fees, such as laptops, cell phones, and video game systems. Raising kids who can distinguish between the “haves” and the “gotta have nows” is daunting but not impossible. Before your child leaves the nest, she should know:

Here’s a guide to helping your kids blossom into financially smart adults.

Preschoolers. As toddlers begin learning their numbers, curiosity about money often sprouts, too. It’s never too early to model good spending habits by fostering their interest from the start. For example, use a shopping list at the grocery store to explain how much you plan on spending or give them a piggy bank and help them count some pennies already stored inside. Help older preschoolers open bank accounts to save money given as gifts or from an allowance; many banks will waive fees for children’s accounts.

Elementary School Age. By the time your kids are in school, their interest in money and how to earn more of it will increase. Fortunately, the myriad school and extracurricular fundraisers kids are exposed to provide a perfect teaching tool about earning money. An allowance will create an income that teaches your child the basics of money management. Don’t hover too much; let them make mistakes in these early years before they have an actual credit rating to sabotage so they can learn what happens when they fail to make wise choices. Older kids might want to earn more money; provide extra chores around the house or yard.

Tweens. Today’s middle school kids are pretty well assimilated into our consumer culture and ready to begin making smart spending choices. If you think your child is ready, provide a spending and entertainment budget and let them use it as they wish (while respecting your family’s values and rules, of course). Either they’ll become savvy shoppers or they’ll learn to live without text messaging. Keep a dialogue open by talking with your preteens weekly or monthly about their choices and yours.

Teens. These are your final years to significantly impact your child’s money skills. Credit card companies aggressively court high school and college students, so it’s crucial that your kids understand the consequences of all that “free money” (including high interest rates, fees, and potential damage to their credit rating if they don’t pay on time).

The Bottom Line: Kids learn about money in two key ways: first-hand experience and watching their parents. Being a positive role model and setting clear expectations will put your kids on the path to future