Teaching children about money at an early age will help them become accountable as they grow older. Accountability, responsibility, and dependability are traits that all parents want to instill in their children. Teaching children to save money at an early age teaches them self discipline. Saving money and not spending it wastefully, requires self control. Children need to start out small with a desired goal in mind. It must be obtainable and the reward must be one they cannot resist.
Parents can then offer suggestions as to how to go about acquiring this money, and the time frame in which they must do so. This not only teaches them how to save money, it also teaches them to meet deadlines. In all reality it also teaches them consistency, and persistence.
Parents can encourage their child to open up an account at their local bank, and watch their money gain interest. Children will feel empowered knowing they are the overseer of their own money, and not mom and dad.
In this video Dr Elizabeth Kilbey - who appears as a child psychologist on BBC's House of Tiny Tearaways - gives some valuable advice.