Part of a family’s budget may include allowances dispersed to children. Sometimes, these payments are linked to chores or other family obligations, but they are income to the kids. Occasionally, they may also receive gifts from relatives. Older children may have additional earnings from a part-time job. You will do your children a lifelong favor if you help them appreciate the importance of making a plan to save some of this income.

Just like their parents, kids have both immediate and more long-term needs. Encourage your kids to think ahead about what they may want and to weigh the option of splurging on short-term gratification versus saving for something else. Help them assess how long it will take them to save the money. Consider providing a “savings incentive” by offering to match whatever they’ve saved when it comes time to buy. Help them keep future obligations – such as buying gifts for others during the Holidays – in mind and plan accordingly.