2. Help them earn through a part-time job

Children can benefit from having a casual job. It works as a basic step towards getting a valuable experience in finding and applying for a job, and also teaches them the responsibilities involved with employment. Having a job will help your child to have an independent source of income. Get your child to draw up a spending budget for their wages, allocating part of the money to spending and part of it to saving. Running out of money before pay day is a great lesson in the value of sticking to a budget.

Encourage them to set specific and realistic long-term goals and to save some of their pay each week towards their goals. Teaching your kids how to manage money from an early age provides valuable skills for budgeting and saving, and establishes sensible money habits that will stay with them for life.

3. Give them financial choices to understand decision making process

Financial decisions are mandatory in one’s life.  You can always give your children the choice of purchasing two different foods or two inexpensive toys.  They can be told and very soon they come to understand that they have enough money to pick only one.  Making smart decisions as they get older and participating in family decisions begins with the simplest “Do you want this one or that one?” kind of questions.