Mike Heath, General Manager of online banking service RaboPlus.co.nz, says some kids are more inclined to spend money rather than save it, which is natural as everyone has a different money personality.
Teaching budgeting skills to your children is a gift for their later lives - it won't be long before they are facing student loans, hire purchase, credit card bills and mortgages. It's never too early to start teaching kids about money and budgeting - and the sooner you start, the easier it will be when they leave the nest.
Independent financial commentator Diana Clement has some key tips on teaching budgeting skills.
Tip 1 - "Help your child divide up their pocket money into three different jars: money to spend now, short term savings and long term savings. Some people advocate a fourth jar, of money to donate to charity."
This is a mini example of real life budgeting, and can help even very young children to learn about how to enjoy some money now, and set some aside for big items they can't afford immediately, such as new toys. Regularly help your child count the money in their short and long term savings jars to show them how quickly their money accumulates.
Tip 2 - "Teach wise consumerism by having your kids compare prices when you're shopping".
Use your weekly grocery shop to explain the tradeoffs made to keep to your budget, such as how you choose between a cheap or expensive brand and selecting the items on sale.
Tip 3 - "There is no need to be shy about discussing your household budget with older children."
The best way to learn about budgeting is to watch others do it. Take the time to talk your children through your bills for food, transport, power, water and rates. Explain whether you have a budget or not, how to keep to your budget and how you will pay the bills.
The added advantage of sharing your household budget with your child, is when they ask 'why can't I have one?', you can actually show them that it isn't possible within the family budget, rather than just saying no.
Remember, you don't need to be perfect at budgeting - no one is! Let your child learn from your mistakes.
Mike says for some young people, working part time is the key to learning budgeting skills.
"Jobs like working in a supermarket, or delivering newspapers, help kids learn about earning and spending with their own money. Discuss with your kids how much they are earning then look at how much they are spending on things they want now, versus what they could get if they budget and save up their money."
Diana adds that basically it's talking about the difference between wants and needs.
"It can be a good idea to let teenagers take control of their own budget for items such as mobile phones, clothes and toiletries."
Older kids can be motivated to budget by bigger consumer purchases, or special trips or holidays. Those older again may be motivated by saving up to buy a car.
And in the end, don't worry too much if your teenager has poor budgeting skills. There is still plenty of time for them to acquire them!
Open an account for your child today.