How to instill responsible habits in children regarding money:

 Do not give your child an allowance that has no responsibilities tied to it.

1. 1. Make an allowance an award system for completing necessary tasks, i.e. chores.  Even small children should be giving tasks to complete in order to receive their allowance (picking up toys).  As your child grows, you can add more responsibilities while increasing their allowance.  Keep a checklist posted so the child can monitor their progress.
   2. This prepares your child for later situations with jobs and inhibits a feeling of entitlement to money.
2. Encourage your child to budget their money (make it a condition on receiving their allowance).
   1. Establish "Save", "Spend", and "Give" funds for their allowance.
   2. "Save" funds can require parental permission to spend.  To encourage your child to save and teach them real-life money lessons, you could even establish an Interest system (i.e. child receives 10 cents for every $5 in Savings each month.)
   3. "Spend" can be used on anything the child desires at any time.
   4. "Give" should be saved for charitable/church giving or buying gifts for others.
      

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