As you’ve probably noticed, we are all born with our own unique personalities. The same also seems to be true of spending habits. Some kids (and adults) may have a natural urge to spend every penny that crosses their palm, while others will hold on to their cash without the slightest impulse to spend. Thankfully the tendency to spend isn’t set in stone. Most kids are flexible enough to learn to save money – if you provide the right guidance.

While each may require a different approach or emphasis, depending on the child’s age, following are some simple steps you can take to help your child learn the value of money.

Give them an allowance. In order to save money, you first need to have some money. What better way for a child to get money than to earn it for themselves? Offer your child some money each week in return for completing chores and/or meeting certain standards of behavior, such as:

· Keeping a tidy bedroom

· Walking the dog

· Helping clean up after meals

· Using good manners without being reminded

· Or, whatever behaviors are important to your family

Don’t let the delay between completing the chore and earning the money grow so long that your child loses track of the connection between them. This will help establish in your child’s mind that money represents value.

Monitor their spending. Some children have a tendency to spend freely or even lose track of their coins and bills. To help get them off to a great start, get involved in tracking your child’s cash on hand, and making sure he or she knows how much they have. This can be accomplished with a simple paper ledger, or with a sophisticated spreadsheet complete with goal tracking. Again, age will dictate the method you utilize

Teach patience versus immediate gratification. At first, most children will spend their whole allowance on something that gives them immediate pleasure – candy, toys, music downloads, etc. As they grow more sophisticated, you can help them recognize the pleasure and value of things they can’t afford to buy on impulse: perhaps a better quality toy, a special book, or concert tickets. Once they understand the possibility of making better purchases to fulfill longer-term plans or desires, they can begin to grasp the concept of "not spending now" so they can purchase something more satisfying later on. Whenever they spend some money, talk with them about how much they appreciate or value what they received for it. This process will help your child begin to develop worthwhile concepts about the mature use of money.

Strike a balance. As you talk with your child about money, spending, and saving, strive to help them find a happy medium. Their aspirations to accumulate money shouldn’t reach the point that it drives their every thought and action. On the other hand, they should not be so desirous of spending that they fail to use their money wisely. It’s also important not to encourage any feeling that spending for its own sake is fun, or that possessions are the primary source of pleasure and satisfaction.