Most of the things we use today, we’ve learned years ago. Sure, there are so many discussions on nature and nurture but I think it’s best to have each one reinforce the other positively.

One of these things is spending. While we don’t want to bring up misers, we also don’t want them to grow up being to lavish and money burners. Exposing them to budgeting early helps develop a thrifty attitude.

Give the child regular allowance

A regular allowance helps build a child’s notion of independence and responsibility that comes with his/her own money. While it exposes the child to the buying power, he/she is also exposed to the limits of money. Let the child spend it on things that the child needs and wants.

Regular also means that you replenish the funds on a given time frame (daily for very young kids, then shift to weekly as they get older). If the child runs out before the next allowance day, remind the child that he/she has to get by, reinforcing the importance of saving. If the money’s needed badly, give some. But make sure you make it clear that it’ll be deducted from next week’s allowance.

Keeping all spending bases covered

Ample allowance means that the allowance you give must be enough to cover the basic needs plus a little extra for emergency. If he/she asks why other children get larger allowances, walk them through their daily expenses and be sure to clarify that what you give him/her is actually more than the child needs.

Never use money as a discipline tool

Some parents use the allowance as an incentive program for good deeds. It shouldn’t be a merit-demerit system. It only confuses the child who might equate with good deed to higher allowances.

Instead, why not encourage kids to earn. Take on odd jobs. Work a paper route. Even some extra chores around the house that requires more effort can be used as a training ground for earning. You can also explain that it’s the same with grown-up folk - you work for what you earn.

Give him a piggy bank

Children can be irresponsible with loose change. So better get your child a piggy bank where he/she can drop the coins left for the day. When the child’s old enough, you may want to start his/her own bank account. Make the piggy bank breaking a momentous occasion. Count out all the coins and head to the bank. A college fund perhaps.