One way to do it is by giving them allowance. Many parents feel that they already buy their children so much that they can’t afford to give them allowance too. Well, definitely buy your kids the necessities…the things that meet their daily needs, like food, clothing, personal hygiene items, and school supplies. But then have your kids work by doing things like making their bed, doing dishes, or taking out the trash in order to receive their allowance. You may also want to include socially responsible actions in the criteria for receiving their allowance, by adding things like: help their sister with her homework, or hold the door for a person entering behind them, etc.
Once the kids have their allowance, you may want to get them TWO piggy banks. Then have them split their allowance in half. On goes in the piggy bank they use to save money (for college, a car when they are a teenager, whatever…they’ll do it if you tell them they need to), and the other half goes in the piggy bank they can spend. Plan a day, say every Saturday, that you will take your child to the store to spend what they have saved on toys. But do not let them pick something that costs more than what they have. Tell them they will have to save their money and add it to next week if they want that item. If you simply give them the extra money every time, then that defeats the purpose of the lesson.
Another way you may want to help your kids become financially responsible is to explain to them that there are other kids out there whose families do not have enough money to buy them clothes and food -- never mind toys. Have them take $0.50, or some such amount, out of their allowance and give it to the Shriner or Salvation Army person standing at your local department store. Do not do it for them, make sure it is them who takes the money from their piggy bank, and them who puts it in the Shriner’s bucket. If you have explained several times why they are doing it and what they are helping, they will understand and feel good about it just like adults do when they give to help someone. Do not do it every week, but once or twice a year will make your point without the child resenting it. Doing this may not help your child learn to save like the dual piggy bank scenario above, but it will teach them the value of the money they earned, and the importance of choosing what you do with it.
