Children learn the concept of "want" at an early age. Your daughter may be grasping for the newest Barbie on the toy store shelf or your son could have picked out the latest video game he just has to have. And, although you want to give your child anything she or he desires, it may be time to step back and start teaching a lesson in finances.

(ENLARGE)

Karen Partee, Vice President of Business Development at Texas Bank and Trust, gives some tips on teaching your kids about managing cash.

"One of the best gifts you can give your children is a strong foundation when it comes to money," said Karen Partee, Vice President of Business Development at Texas Bank and Trust in downtown Longview. "It's never too early to teach your children how to save."

So how can you help your child build good financial habits now?

"Kids learn how to spend money early on. Even five-year-olds get monetary gifts for birthdays or holidays," Karen said. "(At Texas Bank and Trust), we believe if they're old enough to spend it, then they're old enough to save it."

Here are some things to think about when teaching your kids about managing moolah:

Make money part of their daily lives

Involve your children in daily aspects of money. For instance, Karen suggests bringing your kids with you to the bank when you go. Let them see you make transactions as you explain what you're doing. Some banks offer tours, allowing kids to see how big a role the banks play in day-to-day activities that will affect their lives.

Bring them along to the grocery store and have them help you compare prices. Show them price tags on their favorite foods and the final bill at the register. In either case, you get to spend time together while learning, so they're win-win situations!

Lead by example

Chances are, children will echo your habits and attitudes about finances. That's why it's so important for you to show them how careful planning and responsible choices can make your financial situation run smoothly.

"Parents must know that their kids are watching them. If parents aren't already setting good examples with their finances, it's never too late to start," Karen said. "Make a change in how you do things. Get your paycheck, set aside a percentage of that check and put it in a savings account. Pay your bills, and then see what's left over to spend on things that you want. It's all about setting a good example."

It's about account-ability

Many banks now offer starter savings accounts for children. Texas Bank and Trust offers something called Cool Kids Savings Club, which gives kids ages 1-12 the opportunity to open their own account. The club was started in 2005, and Karen said the response has been phenomenal.

"Since we started this, over 1,000 local kids under the age of 12 have started their own accounts," Karen said. "They're saving for games, cars, clothes, a horse and even college. Young children understanding the concept of saving for higher education is amazing."

The savings club encourages young savers by giving them a small gift with each deposit and sending out quarterly newsletters offering tips on budgeting, suggestions on how much to save and even money riddles and rhymes for fun.

"We also have Digitz The Dollar Dog and other fun mascots for the Cool Kids club members to see," Karen said.

Call your bank to find out how you can get your child started with a savings account of his or her own!

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"One thing I did to help my girls learn about money management is something I call Room Check. Early on, I put a calendar on each of their bedroom doors, and each morning before school I would check their room for tidiness. If the room was in order I would put a check mark on the top half of that day on the calendar. After school and homework, I would do the evening check. If all school clothes were put away and supplies in a neat stack, I would give them a check on the lower half of that day. Each check was worth $1.50. At the end of each week, they could have made $21. There was an additional reward if they got all 14 checks. It was a date with mom or dad the next week.

As an incentive to save money, I opened a savings account for each of them. Every week, if they would give me $5 of their room check money, I would match it with $50 and put it into their savings which was designated their "car account." As the years went by, they watched their savings increase. When they turned 16, they were able to qualify for loans in their names, securing the loan with their savings, thus building their credit.

They are now 18 and 20 with no debt. I think Room Check really helped my daughters learn money management, and I am sure they will do it with their own children."