Families can began teaching their children about family finance early in life.  Early lessons that are practiced regularly will create a financial foundation that can be repeated from generation to generation.  You teach trade skills and etiquette, why not finance?  

Start with a small reward for a task preformed well.  Let the child know that a well done task has more value and the reward is greater.  Start with a tangible reward instead of a monetary one.  Perhaps a trip to the park or visit a friend.  Be imaginative and offer graduated treats.  Explain how you set the value for each.

As children grow and understand the principles of money teach them to count change.  Demonstrate that you save by emptying your pocket change into a visible place.  As the child sees it increase and their interest matures allow them to count your savings.  Take your children to the bank and open an account in their name.  Allow them to deposit the change into their own account.

Continue to involve your children and save in this manner.  Regularly make deposits into their account using your pocket change.  Remember to have them count it.  Deposit additional amounts regularly and let them keep the record of the amount and the source.  Let them see it grow.  

Let your child choose a purpose and set a goal.  Guide them by offering suggestions.  A short term goal could be to purchase a toy.  A college fund could be a long term goal.  Teaching your children about family finance involves the children in both the saving and the spending process.

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