1.Work hard for your money 

You child should understand from early in life that money is not something that is freely given, but it is earned through hard work.

As a parent you may be tempted to spoil your child and give your offspring everything that they desire but you should learn to emphasize that nothing comes free. This ofcourse does not mean you should put your children to work re-roofing the house, but you should instead get them to do chores in the house (depending on their age) so as to earn some allowance. If you do choose to give your kids an allowance, tie it to the successful completion of certain jobs throughout the week.

2. Understand a budget

You child may not understand that mum and dad have a limited amount of money to spend every month. Financial budgeting is a foreign concept to children yet is it is one of the central pillars of financial literacy.  It is therefore is your duty as a parent to teach your child what a budget is and why it's a good idea.

A fun way to teach your child about budgeting is through a Monopoly game. Every stack of the money can represent how much money you make every month. Divide the bills one at a time to show how much you spend on the house, on food and what goes into your savings. Show your children that every month you have a conscious plan for your money. Playing the game is a great way to spend time with your kids while they learn something.

Finally, encourage your child to start a budget of his own: Part of his allowance should go to savings, part to charity, and part of it is just for fun. Help your child identify what he truly values, and budget his money accordingly. 

 3. Save

The cornerstone of healthy personal finance is also something many people struggle with: saving money. From the time your kids are old enough to desire toys, books, and other entertainment items, you should teach them how to save for the things they want to buy.

An allowance is a good tool to use to teach your children about saving. Your child may want the latest toy that costs KSh 1,000 but you only give them KSh 200 a week. Explain to your child that if they want to buy the KSh 1,000 toy they need to save every week in order to afford it as opposed to spending the KSh 200 on candy every week.