Shrinidhi offers some tips on how to help children cultivate a habit of savings:

Tip 1: Reward
Promise to contribute to the savings made by a child – If he/she saves 100 Rs by end of the month add Rs 100 from your side. This reward should encourage him to save more. (Downside: The child should not borrow from elsewhere and show as saving- opening a minor bank account in his name will be very good idea.

Tip 2: Online financial games:
There are some free games online using which one can do virtual trading. Teach him some basics of trading and introduce him to this game-it will be as good as trading in real market except that profit and loss will be virtual. Such games will make him understand the value of money and how markets operate. If he likes the game chances are he will develop a sense of respect towards money and its value?

Useful, considering kids are starting to learn earlier about how to spend.