If every child in Britain clubbed their weekly pocket money together they would have a combined spending power of £75m a week*.

That's money worth taking seriously! And with every television advert between the hours of school and bedtime determined to separate your child from her cash, it's important to teach them the value of money young.

Pocket money pays off
Giving them pocket money is the way to do it, but you've got to be a grown up about it. Here's how:

• Give them the money on a set day every week.
  Don't vary the amount or give advances ­ the point is to teach them that money runs out so you have to learn to make it last.
  
• Teach them how to budget.
  If they want that special Barbie or Gameboy then the best way to get it is to set aside some of their pocket money every week and save up for it.
  
• Open a savings account for them.
  Choose a building society which allows them to put in a bit every week or every month and still earn interest. That will teach them the power of compound interest ­ the money they save earns interest, that in turn adds to the pot and earns more interest, and the whole thing snowballs.

* Source: The Mottley Fool 2006

Disclaimer While every effort has been taken to ensure accuracy at time of publication, this information may be subject to change. Always consult your financial advisor.