Credit unions and banks may have changed -- many are "visited" only online now -- but to most kids they're still mysterious, and the idea of trusting their pennies to them may seem downright foolish. As a parent, it's your job to get your kids over that fear, and the best way to do so is through exposure.

"The best way to teach kids about the financial facts of life is to encourage them to begin experiencing them at an early age," says Jayne Pearl, author of Kids and Money.

Start by introducing your child to a budget. Figuring out how much money they have coming in is the first step toward figuring out how and where to save it and spend it.

Give your child a real-life lesson in interest by borrowing a dollar of their allowance. If you are the biggest source of their income, make sure it's in the form of a weekly allowance. A month is too far in advance for kids to plan, and doling it out when you feel like it or just happen to remember may suit your needs, but it isn't helping your child. They need to be able to count on regular income, even if it's just a dollar a week, so that they can create and stick to a savings and spending plan. Before you help your child open a savings account, sit down with them and explain what a credit union or bank is. Reassure them that putting their money there is safe. Tell them how it works -- that they will earn interest because the credit union or bank can lend their savings to someone else at a higher rate.

You can even give your child a real-life lesson in interest by borrowing a dollar of their allowance for one week, and handing them $1.10 when the time comes to repay the loan. Explain that the extra 10 cents is called interest and is what you get when you save your money in a savings account.

Now it's time to open an account. If your child is still young, say 12 or under, it may be too early for them to have a checking account, so start with a savings account. You know your kids better than anyone, so think about their interests before deciding how to open the account. Are they computer savvy? If so, you may want to forego taking them to a credit union or bank entirely and open the account online.

Help them enter the deposits and withdrawals in a savings passbook. If they open a checking account, instill in them the importance of recording every check they write. Find ways to give them as much hands-on experience as possible.

Start involving your child with family financial matters. Once they have some practice managing their own money, start involving your child with family financial matters. For example, when you make a loan payment, review your account statement or balance your checkbook, sit down with your child and share the experience.