It is vital children grasp the concept of the value of money from a young age.
According to Joanne Mallon – author of Toddlers: An Instruction Manual – one of the most important lessons parents can teach their offspring is how to budget and save properly.
She added in the current financial situation, it is even more imperative for mums and dads to explain the need to manage finances.
"Children usually don't have any innate sense of the value of money. It's something that we as parents have to teach them. [Don't] simply dole out cash and gifts willy-nilly," Ms Mallon observed.
It is particularly useful if little ones realise that people have to save up cash before they can make a big purchase, as this will stand them in good stead when it comes to buying cars and houses.
Parents may also choose to reward their children for doing household chores such as cleaning their room, ironing or washing the car, Ms Mallon remarked.