You also want to help your child establish credit, so they'll be able to do things like qualify for their own apartment. Scharr-Bykowsky says a good way they can do this is take out a small loan for a car. "Even if they can afford to pay in cash for a car, I'd have them take out a small loan and pay it off quickly," she says. "Just the history of having that loan and paying it off helps your credit score."
"The greatest gift you can give your kids is their own financial independence," Scharr-Bykowsky says. So share stories with your children about your own financial mistakes, so they don't make the same ones. Good financial habits don't come easy—they must be instilled.