Are you tired of listening to your child’s pleas for more cash? Do you want to raise a money savvy child? Well, you no longer have to plug your ears wondering what to do. Teaching children about saving money is not a difficult task, and with a few tips, you can have your youngster building his own sizeable nest egg.

The best way to introduce your child to the concept of saving is to give her an allowance. You can decide how much that should be based on your child’s age and your own financial situation. Two dollars a week for a young child would be a reasonable amount, while ten or fifteen dollars might be appropriate for a teenager who needs a bit of lunch money and has some kind of social life. Pay more or less, depending on your beliefs, budget, and lifestyle.

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When you give allowance to your child, make it clear to him that part of the money goes into savings. Doing this starts to teach him about budgeting, and he learns that a portion of any money he receives should be put away for future purchases or investments. For example, if you give your child a dollar, teach him that 50 cents can be spent now, 25 cents saved for that package of hockey cards he wants, and 25 cents put into savings. Stay away from giving your child advances if his allowance runs out. Unless there is a good reason for the money’s being gone, giving advances does not help to teach him the importance of budgeting.

Give your child a piggy bank, a money jar or some other container where she can deposit her savings from each allowance. Young children especially enjoy watching the money build up in their piggy banks, and they love to take it out and count it. This is a great opportunity to teach your child the different denominations in our currency, and what each coin and bill is worth.

When your child’s piggy bank starts to fill up and he is old enough to sign his name, take him to the bank to open a savings account. Make it a requirement that he deposits his savings at least once a month. Children love the independence of having their own bank accounts, and it’s a responsibility they learn to take seriously. Get your child to keep track of the items in his passbook, and show him how interest helps his money to grow.

Children learn best by example, and one of the best examples you can give is to have your own savings account into which you make regular deposits. Show your child your passbook or statement, and show her how you use your savings to invest and make even more money. At some point, her savings will be significant enough that you can teach her to do the same thing.