Save Child's Allowance

Help your child save a portion of his or her allowance. Start by opening a bank account in your child's name. Ask your bank about special accounts for young savers. These accounts usually waive fees and minimum-balance requirements, and you will probably have to cosign to open the account.

It's well worth it. Watching interest build up on his or her savings is a great way for a child to learn the power of compounding.