It is a good learning experience for kids if they earn their pocket money.
Joanne Mallon, author of Toddlers: An Instruction Manual, stated activities such as cleaning their room can be used to incentivise youngsters.
She added parents have to remember they act as role models to their little ones when it comes to finances and so they will frequently follow their lead.
"Children are very sensitive to what their parents say and do and will pick up most of their messages about money from you," Ms Mallon remarked.
Because of this, mums and dads should consider what kind of attitude they want their offspring to develop when it comes to cash.
In the current financial environment, UK adults need to be extra careful to make sure their kids grow up with a good understanding of how to budget.
Ms Mallon added this means cash should not always be given out, as their offspring will fail to learn the value of money if this option is chosen.