In the past I´ve written posts about budgeting, and most of the research I´ve done for these posts suggest getting even the youngest of children involved in the budgeting "game.´
These articles also stress the importance of teaching about personal finance to our children long before we even think they can learn about personal finance. Toddlerhood is the place to start. By learning early, children will be much more apt to spend wisely and to save as adults.
The National Endowment for Financial Education (http://nefe.org/pages/multimedia.html) has information about teaching children about personal finances. They list six major areas of personal finance, which are setting goals, earning money, spending money wisely (budgeting), using credit wisely, protecting assets, and saving and investing.
Parents can begin teaching children as young as two about the value of money. At this age the child can begin learning that money is used to purchase items and that by saving money we can then use the money to purchase an item. The website suggests starting small. Save for a box of crayons or a book rather than something large, like a bike, which will take too much time. As the child gets older, the purchases can become larger. Also, children at this age can work on learning equivalency: for instance, a nickel equals five pennies.
For older children, the website includes information about setting up an allowance, maintaining a checking account, and investing.
To learn more about teaching children of all ages about personal finance, visit the abovementioned website. Also, the following are several additional websites that can be of assistance as you begin to teach your children about personal finance.