Teaching Children Money Principles

At our class for Financial Peace University last night, we discussed a great way to teach children how to give and save money. Of course, the idea for this came from Dave Ramsey's video, but what a great way to teach children money principles and also teach them how to tithe and give of what they earn themselves!
Many people pay children an allowance each week and they are allowed to do whatever they want with the money. Dave suggests an envelope system in which each child is given three envelopes labeled 'giving', 'saving' and 'spending'. They are also given a list of five weekly chores, and at the end of the week if each chore was accomplished EACH day of that week, the child receives a dollar for every chore. This is not a lot of money, but is plenty for children under the age of probably 10.
Of the money given at the end of the week, which will hopefully be $5.00 per child, $2.00 goes for giving, $2.00 for saving, and $1.00 for spending. Dave states that this way you aren't giving your child their tithes and offerings every Sunday, they are earning their own and they feel much better about giving of their own money. (Maybe not always, but I at least know that Braeden would! The other two will eventually catch on...)
He also states that most children end up saving everything that is in the saving AND the spending envelope because they like the idea of adding to it every week.
My husband and I plan to implement this in our home as soon as possible and the kids are very excited about it, believe it or not. Of course the chores must be age appropriate...I don't expect Carson to be able to clean the dishes or put them away!
I thought I would share this idea with my good friends, hopefully it will help you teach your kids how to manage their money and also give them incentive for helping out around the house!