Being responsible with money doesn't come easily to everyone, in fact lots of people struggle for it forever.

But habits learned young are habits we tend to stick with, so that's what makes it so important to try to teach our children responsible money management. They're lessons they can carry through life.

Unfortunately, while many Australians embrace the notion of becoming financially independent, we still have one of the lowest saving rates of developed nations.

And even though our average household wealth has increased, generally as a result of rising property values, our saving record has got worse, not better.

As parents we have the opportunity to help change this trend by teaching our children to become financially savvy. And, who knows, it may encourage more households to change their own spending and saving patterns.

Most parents pay their children pocket money on a regular basis, which is a good starting point for teaching basic money matters, because in my experience, even young children can grasp the concept of saving.

One family I know of pay their primary school-aged children eight dollars each, per week.

Out of this amount, the kids bank five dollars every week and use the remaining three dollars to spend as they wish - either saving up for something they want or using to it to pay for treats.

It's not a bad system, and one of the youngsters involved has already accumulated a bank balance of around four hundred dollars - not bad for a nine-year-old.

The important thing though is not how much the children are paid - but that they are given some direction as to what to do with the money.

Some parents encourage their children to put money aside by matching their savings either dollar for dollar, or with, say, 25 cents for each dollar the kids save.

This can provide a good incentive, but the whole process can become expensive for large families. In this case, offering more money for extra chores done around the home, not only provides children with more pocket money, it gives youngsters a sense of reward for their efforts.

Children's bank accounts are available with most banks, credit unions and building societies, and while they often come with marketing gimmicks like stickers or comics, designed to appeal to young children, they generally pay paltry rates of interest.

Internet-based savings accounts can be a better option because even though children often only have small balances, many of these accounts pay interest rates of between 7 per cent to 8 per cent, and most are fee-free.

This is important because bank fees can be a real disincentive to kids - eating up small balances in no time at all.

Online saving accounts have the added advantage that children can view their bank balance over the internet, without the need to have their passbook updated in a local branch.

Another aspect of teaching kids effective money management, is responsible spending. Showing children how to compare prices and look for bargains, is a good way to help them make the most of the pocket money they receive.

Remember, children often learn best by example, and our own attitude towards building wealth can go a long way to developing a sense of financial responsibility in our children.