We talk about all kinds of things with our 11 year old grandson, including finances. He gets his allowance and some guidelines on spending. As we help him to develop priorities, one thing might emerge with significance that's worth saving for. Such as, if he really wants that cool game at WalMart, he might have to sacrifice that shiny skate board in order to get it. We give him his allowance anyway (if he's not grounded), and let him see for himself what gets set aside in favor of the shiny thing.

If we are going through a difficult patch in our business, I am careful to let him know that our own options are limited, and I honor our own priorities by not borrowing money to get my own shiny thing.

We must lead by example... I try to let him see my priorities, then give him enough slack to choose his own. When he sees the results, he has a better grip on the concept of economy... a concept few of us have a grip on these days.