It's a conversation heard in stores across the country:

"Mommy can we buy that?"

"No, I don't have any money for that right now."

"Can't you use your credit card?"

So how do you teach your children the value of saving and managing their money? Start by looking at your own habits to ensure you're setting a good example. Then help them be successful. Here are some tips:

Open a savings account designed for children

Explain how interest works and how they can earn more by keeping the money in an account. Also decide some rules for the account. Are they allowed to take the money out whenever they want? Do they have to leave it in there for a certain length of time?

Provide an allowance

If you give your children an allowance, set some rules. For example, if you give them $10, they must put at least $2 into their savings account. Talk to them about how they want to use the other $8. You should also talk about how money they receive from gifts will be used. Will you allow them to spend it all or will they need to save part of it as well.

Develop money categories

Every good budget needs a system. Set up envelopes, jars or piggy banks, and label them. Some ideas include:

• Pocket money – this is money they can spend.
• Savings account – this is the money that will be deposited into the savings account.
• Charity – this is money they will donate or buy items for donation.

Offer a bonus

If it's within your budget, you can give your children an incentive to save by offering them a bonus when they reach a certain amount. For example, if they save $100 you might add $25 to their savings account.

Do they need it or do they want it?

Explain the difference between wants and needs. It's important that they understand how you budget your money and it builds a foundation for their future money management skills.

Talk to them about setting goals

Ask them what they are saving their money for. Cut out a picture of the item and its cost. Each week write down how much they have added to their savings chart so they can track their progress.

Teach them to be smart shoppers

Show them how to compare prices and wait for sales. This teaches them how to get the most from their money.

Explain how credit cards work

Depending on the age of your children, it's a good idea to explain how credit cards work because what they see is that they can get the things they want now without saving for them. What they don't see are the interest charges and additional costs associated with debt.

Provide advice but let them make mistakes

Sometimes the best lessons are learned by making mistakes. If your children want to spend their pocket money on impulse purchases, remind them about their goals but don't stop them from spending it. They will learn to regret their impulse purchases when they see how much longer they will have to wait for their goal item.

Encourage giving

Introduce your children to charitable giving. Talk about different causes and what they do. Encourage them to put a portion of their money aside, and perhaps offer to match what they save. Then when they have enough for a donation, take them to the charity to donate so they can see how they are making a difference.