Financial discipline is really no different than any other discipline. If started early in life, good habits will be well established and will serve children well for the rest of their life. So what are the basics that can be taught to children? Perhaps one of the most important and most difficult it seems is the principle of maintaining a savings plan. It is important that children are taught the value of saving for the future.

It should be pointed out that for children to be successful with having a savings plan they must also be taught and understand another basic principle. That would be differentiating between wants and needs. They must be able to understand the concept of going without.

There are many different ways to teach children about saving. Perhaps the most well known would be the good old fashion piggy bank. And really, for small children, it may still be the way to go. There are other somewhat similar products available such as some sort of cute container that has at least two different slots for money. One slot is for the child's play money, or the money they may want to save for a special toy or treat. One slot is for savings money, which they hopefully continue to accumulate and not spend.

Another way for parents to teach children about saving money would be to sit down as a family and discuss with them the possibility of a future vacation or a future purchase that the entire family could enjoy. Then with all members of the family involved in making a plan on how, as a family, the money may be saved to ultimately reach the goal, undoubtedly there will be sacrifices to be made and having to give up certain things to be able to focus saving efforts for the new goal.

In this way each family will take an active part as well as being able to understand that the sacrifice given will make them appreciate that vacation or boat more when they are enjoying the fruits of their labors. This will help them when they become adults and will be able to apply these principles to their own personal finances.

Another basic principle that children should learn would be that of living on a budget. This can be accomplished by either providing an opportunity for children to earn money by doing odd jobs around the house that are in addition to their usual chores. It probably isn't right to pay a child for making their own bed or cleaning their room. However, being able to earn money will help them understand that it takes hard work and sacrifice to have the things we want, and more importantly, need.