Through instruction and example, you can teach your young children the value of a dollar and other money matters. W.C. Randall of Edward Jones Investment suggests that educational coloring and activity books are effective tools for teaching children about money and the functions of financial institutions.

Randall recommends that the next time you go to the bank, you should use the opportunity to teach your child. Explain to him or her that the people taking the money are called tellers. When you give them your money, it is called making a deposit. The money is placed in a checking or savings account for safekeeping. People who have checking accounts don't have to carry a lot of money with them. They use their checks to pay for things such as groceries. The money that stays in the savings account earns interest and becomes more money. People who have a plan for saving and spending money call that plan a budget. Someday you, too, will have your own budget.

What the words mean