* Introduce your children to money as soon as they are able to count and provide them all the information that they question.

* Make them understand the difference between need, want, and wish. Once they are fully able to understand this then they will be able to spend money wisely.

* Teach your children to set goals and achieve them by saving. It will ultimately teach them to be responsible for themselves. The goal can be a toy or any other such item.

* As your kids grow older, you can teach them the concept of earning interest from savings. Show them how money accumulates when you save. You can encourage them by offering interest on the money they save.

* Give allowances to your children in denominations that encourage them to save. So, instead of giving the complete amount it is better to give change from which they can save the small amounts.

* Open a saving account for your children. Having their own bank account will encourage them to save. Also, do not stop them if they want to withdraw a little amount, as they will get discouraged about saving. Put up a savings plan and make your kids strictly follow it.

* Teach them to keep a record of all their spending and savings. In this way, they can know how much they spend and save.

* Teach them to live within their allowance by making a budget. If you are strict in your enforcement then the kids will learn how to live within their means.

* Shopping trips are a good way to teach the kids the value of money. While shopping you can demonstrate to them the worth of various items and how to spend economically.

* Allow them to make spending decisions and then show them how they can better upon it.

* Teach them the dangers of borrowing by charging interest on the money you lend to them.

* Regularly discuss simple family finances with your children.