For kids ages 6 to 7:
- Give your child a fixed amount of money at regular intervals (an allowance). For a 6 or 7 year old, suggest she use the money to pay for collectibles or popcorn at the movies.
- Help him develop savings goals. If your son wants an iPod, sit down together to figure out how much he needs to save and how long it will take to save that amount.
- Go comparison shopping. Take your child to the grocery store and buy a name-brand product and the generic alternative. Calculate the savings and have a taste test when you get home. Decide together if the more expensive item is worth the higher price.
- Forget the plastic. Children this age need concrete experiences with cash. It's not until they become teenagers that they can really understand the underpinnings of debit cards and credit cards.
- Play board games. Choose games like Monopoly, Monopoly Jr., the Game of Life, or the Allowance Game.