Welcome to part 3 in a series on simple methods to teach kids about money. In case you missed it, part 1 gave a bit of an introduction and overview to the methodology behind this series, and in part 2 I started to detail how to guide your children through making a budget. Sorry to leave you hanging, but here's the rest ;)

3. Figure out what they have left to spend on themselves. With Independence Day fresh in their minds, you might want to bring up buying their own fireworks next year. School is coming up too – maybe they want that fancy Jansport backpack and binder. These are pretty solid numbers, but set a limit at half of what is left after the gifting figures.

4. Last but most certainly not least, encourage your child to set aside the rest for savings. Let them multiply that weekly savings out 'til they're 16 and see what kind of car they could get ;)

Feel free to mend and mold the budget as your kids want. If they would rather spend more on themselves now and depend on a job later to get that dream car, let them know the dangers but don't discourage independent thought. Who knows – there might be something expensive they want before getting a job that isn't a car.

Make sure they know this first budget is more like a set of goals than strict guidelines. They have to want to save and be responsible with their money without feeling chained by “limitations.”

But what if your kids aren't motivated by goals? For that matter, what about the kids that can't sit still long enough for this kind of thing? Well, keep an eye out for part 4 to get the answers to a those and a few other problems I came across as a financial advisor.

You can find out more about Patricia Mayo and her other projects at Mayobrains.com or ComHacker.org.