I had known 15-year-old Pat and his family for many years. His dad was a highly successful CEO, and it showed in the clothing he, his wife, and his kids wore, so I was surprised one summer day to see Pat come into my office in dirty, smelly tennis shoes and sweat-soaked shorts and shirt. He apologized for the way he looked and smelled but explained that he had to bike from work and didn’t have time to change. His medical problem was minor and took only a few minutes to solve. In the time remaining, I asked where he worked. He replied, “I clean cages at the Jones River Animal Hospital.”

“That’s good, are you planning on being a veterinarian?” I asked.

“No, but it’s the only job I could get that was close enough that Dad would let me walk or bike to work.”

“What are you saving your money for?” I asked.

“I don’t have any short-term goals for it, I just have to fund my Roth IRA because I can do it without having to pay any or just a little tax on it. And when I take it out, it’s not taxed then either.”

“You’re so right, and I’m proud of you, Pat. I guess you’re never too young to get a job or start making money.”

“It’s not just making money that’s important,” he said, with that know-it-all-teenage-look in his eye. “Lots of people make money but still never have money.”

“I’m sure that’s true,” I replied. “So what’s important?”

“Saving money! You see, the best way to make money is to save money. If you make a dollar, you really only have about 75 cents. They take the rest out for taxes and stuff. But if you save a dollar, you have a dollar. And if you invest it right, by the end of the year, you should have more than $1; maybe $1.05 or $1.10, or even more. It’s even better if you put it into a Roth IRA, because you get it back tax-free. You don’t even have to pay taxes on the earnings!”

Wow. Out of the mouths of babes.

How do you instill this knowledge in your kids?

You could ask personal finance expert Dave Ramsey; he’s very knowledgeable and has helped many couples get out of debt. (Find him at DaveRamsey.com.) One of my grandkids went to a private high school that has a short course on personal finance, developed and written by Ramsey.

But Dave Ramsey can’t do it alone. There are lots of things you teach your kids mostly without even knowing. Every time you and your spouse, or a friend, say anything when your kids are around, be it how much food costs, or the price of gas, or ask if you paid the credit card bill, your children listen and you teach them about money.

Remember, parents are the number one teacher of their kids. But parents often use words that kids don’t have in their vocabulary, for example, inflation, budget, payroll tax, unemployment, interest, or checking account.

Make time in your everyday conversations with your kids to explain these terms. Don’t try to shield them from what’s going on or sit them down for a special talk. That will appear to them as a lecture; just talk about the importance of working, earning money, spending wisely, saving, and giving back. By the time kids enter middle school, they should know about all these things and something about stocks, bonds, investing, and how financial markets work.

Even though they may have heard you say credit card or debit card many times, most elementary school kids don’t know anything about these cards, except that somehow they pay for things.

Kids need to realize, as do some parents, that because it’s a lot easier to pull out a piece of plastic than it is to count out actual greenback money, these cards cause us to spend more. A recent study discovered that we tend to spend upwards of 18 percent more when paying with plastic than if we paid with cash.

I don’t think kids under age 16 should have credit cards. They can learn a lot by using a debit card and not spend more than they can afford. Some kids may be mature enough at 18 to own a credit card, but your advice at that age should be to insist that they pay off the balance every month and know how much interest they have to pay if they don’t.

When your kids get money, either from work or a gift, take them to your local bank or other financial institution and help them start a savings program.

That’s a good time to ask an expert about interest rates, stocks, bonds, and mutual funds. Ask too, about compound interest and help kids figure out how much money they could have when they retire if at age 15, 16, 17, and 18 they invested $1,000 each year in an S&P index fund and didn’t add more or take any out. It will surprise them to find it could approach or exceed $200,000.

This is also a good time to interest them in buying a few shares of stock in a company that makes or sells something your kids like. Twenty-five years ago, a 12-year-old son of a friend of mine loved Coca-Cola, so his dad helped buy some Coke stock for $5 per share. Today, a share sells for about $62.50. For every dollar invested, he now has $12.50. I wonder what he would have now if he had bought a used car instead.

Not everything you invest in will go up; every investor has had losses. But with the help of a knowledgeable broker, losses can be controlled or averted. Let your kids know that time is on their side, and help them make the best use of it.

If you want to have some great fun with your family, get Monopoly. When I was young we played it. It was great family fun, and we learned to make change with money and buy and rent properties. Every kid, and you and your spouse, will enjoy the game, and you’ll have the added fulfillment of seeing them learn.