Teaching children the right way to handle money early in their lives will prove to be an invaluable lesson for them.  Start by explaining to them that all of their money belongs to God and that God has allowed them to take care of that money for Him.  God blesses each one of us when we are good stewards of that money.

Teaching this lesson can be done in a number of methods, depending on your child's age.  For preschool and elementary age children, you may want to start by paying them an allowance for chores performed.  Then encourage them to divide their money into three categories - Save, Give, and Spend.

Provide them with three containers labeled with each category.  Have them place 10 percent each in the Save and Give containers.  Help them decide what they would like to save for, such as a bicycle, game, etc., then check periodically to see how close they are to their goal of being able to purchase that item.

The money in the Give container is for their offering at church.  Explain that although God owns it all, He asks us to give back 10 percent to help others know about Him.  When they give this offering, no matter how small, God multiplies it, and they become part of a bigger effort to see His will accomplished.

Planting a seed, watering it, and watching it grow is a good way to illustrate saving and giving.

Lastly, the money in the Spend container is for things they "need", such as gum, toys, etc.  Helping them learn to live on 80 percent of their income now will enable them to really make the most of what God entrusts them with throughout their lives.