By default, parents are usually the primary source of a financial education. However, many young people may receive allowances—or even sizable inheritances—without a sound base of knowledge in saving, budgeting, investing and financial planning. To help the children in your life develop a responsible attitude about money, it might help to consider these points:

Be a role model. Instead of viewing money and personal finance as a forbidden topic, discuss your own financial goals and plans. The level and amount of information shared is up to you, but bring the younger generation in to at least a portion of your plans. How you deal with money issues—from the monthly bills to planning the family vacation of a lifetime—is important, resulting in long-lasting lessons about financial management.

Encourage savings and investments. One of the simplest ways to instill a responsible attitude about money is to encourage children to save. You might designate a portion of children’s allowance to a savings account, or make gifts of cash directly to an account in their name. For younger children, set modest, attainable savings goals. For older children, encourage a long-term savings plan for a large-ticket item like a computer or car.

Consider an occasional matching grant to encourage regular deposits and to help keep goals visible. Take the time to explain basic investment types such as cash instruments, stocks and bonds. Make investing interesting by engaging in conversation about companies that provide popular children’s products such as toys or clothing.

Develop a sense of financial empowerment. Developing responsible spending habits means encouraging well-thought-out choices. Keep goals visible with pictures or charts that plot the growth of funds needed. Take children shopping to compare prices and products so that they view every trip to a store as leading to a potential purchase. To limit impulse buying, consider instituting a rule that prices and products are compared at a minimum of three locations.

Give unto others. Involve children in your financial decisions regarding philanthropy. Discuss the merits of gifts you may have received. Explain the tax advantages of charitable giving, but simultaneously stress the altruistic goals of giving. By helping children contribute time or money to a charitable cause, you can teach them that money is important in ways other than personal consumption.

Developing a sound knowledge of basic financial practices can often go a long way toward helping the children in your life achieve lifelong financial security.

Morgan Stanley Smith Barney LLC and its affiliates do not provide tax or legal advice. To the extent that this material or any attachment concerns tax matters, it is not intended to be used and cannot be used by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Any such taxpayer should seek advice based on the taxpayer’s particular circumstances from an independent tax advisor. Shawn P. Landau and Jeffery S. Gerson are Financial Advisors/Wealth Advisors with the Wealth Management division of Morgan Stanley in New York, NY. The views expressed herein are those of the author and may not necessarily reflect the views of Morgan Stanley Smith Barney LLC, Member SIPC, www.sipc.org. Morgan Stanley Financial Advisor(s) engage Worth to feature this profile. The Gerson, Guarino & Meisel Group may only transact business in states where they are registered or excluded or exempted from registration. www.morganstanleyfa.com/ggmgroupsb. Transacting business, follow-up and individualized responses involving either effecting or attempting to effect transactions in securities, or the rendering of personalized investment advice for compensation, will not be made to persons in states where The Gerson, Guarino & Meisel Group are not registered or excluded or exempt from registration. The strategies and/or investments referenced may not be suitable for all investors.