One of the best life skills that parents can pass along to their kids is to teach them how to budget. A budget can teach kids how to live within their means, and it can show them how to handle the money that they have. Your kids grow into financially responsible adults with your help and guidance.
Set up a system for children to earn a weekly allowance. A good system outlines specific tasks. It also outlines when and how often these tasks must be done and it specifies the amount of money that can be earned for each task. Be sure to choose age appropriate tasks.
Create a chore chart to keep track of money earned. Your child needs to have a clear understanding of how much money he is earning and for what. Checking off tasks as they are completed can help your child to see how much he has accomplished. Pay your child his earned amount of money.
Open a savings account with your child. This is a wonderful opportunity for your child to see his savings grow!