In today’s uncertain economy, with 56 percent of Americans reporting they do not have savings to cover a $1,000 emergency expense, talking about money with your kids and building a strong foundation for financial literacy is more important than ever. While it may seem like a daunting topic to discuss with a preschooler or an elementary-aged child, it is never too early to start. Studies show that children with savings accounts are six times more likely to go to college and four times more likely to own stocks as young adults.

Here are some ways to educate kids on the five key components of financial literacy, as outlined by the Financial Literacy and Education Commission.

Create opportunities to earn money

No matter their age, create opportunities for kids to earn money. For elementary-aged kids, select some chores around the house that you are willing to pay for or help them with a bake sale or lemonade stand in the summer. For middle schoolers/high schoolers, determine what...