Ages 9–10

Teach kids about advertising. Teach them about marketing ploys and pricing premiums. Tell them that if you get one "free" when you buy one extra, it isn't necessarily the best deal.

Talk to them about paying bills for the house. Let them spend time with you while you are writing out the checks or paying the bills online. Reinforce the notion that the bills must be paid on time and there is a penalty involved if you are late.

It's also important to learn to say "No." Just because Sally next door has this doll or pair of shoes, it doesn't mean your children have a right to them as well.

Dolan Smart Money Move: These are the ages when your children should set up their own savings accounts with the money they are, ideally, putting aside. This is easy if you live in a small town or city. If you live in a big city, check to see what the minimum deposit is. You might need to go to one of the smaller banks.

This is also a good time to explain to them how interest works by showing them the banking statement. One good lesson to teach is that "interest" is your friend. If they want the latest, greatest pair of sneakers, and they are more than you wanted to spend, then give them the amount you were prepared to spend, put it in the savings account and let them earn enough interest until they can afford the shoes!

Ages 12–13

Teach them about "risk and reward." This is a good time to talk more about the stock market. Pick a stock in a company they like—for example, Nike or the Gap. Tell them that by owning shares of stock, you own a piece of the company. Track the stock with them every week so that you can teach them about the ups and downs of the market. Point out that by owning more, you can make more if the company does well, but also lose more if the company does poorly.

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