You start by paying them to do some/certain house chores around the house, and requiring them to do monthly statements(showing how much was spent, and how much is left) At the end of the month, if more money is spent, they will receive less money for allowance, and if more money is saved, they will receive more for allowance.Talk to them about compounding interest, how they could be the next ..
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Tip: Teaching Children to Save
Archived on 09/04/2007
My daughter was complaining that she did not know how she was going to teach my grandson how to save money. He likes to spend his alloted amount each week and then ask for more. His Grandpa's suggestion was to take a five gallon water jug and start putting his change in it at the end of every day.
Joshua has become very proud of his savings in the bottle, he can actually see the amount grow each week. Now, every time we go to visit, Joshua will ask if Grandpa has any change in his pocket to add to his savings bottle.
Once the jar is filled he will also have fun rolling the money to take to the bank. Do not use the machines at the grocery stores to roll your change, as they end up costing you about 7% of what you have rolled. That is, of course, unless you have an account at an institution like Commerce Bank, which offers the service gratis - a rare commodity these days in banking.
