One way to encourage this is the 4-Bank System, where money kids receive is split between four "bank" jars: spending, saving, giving, and investing. "It's a great way to teach children to plan and set aside money for different wants and needs, now and in the future," Rupprecht said.
There are other digital services parents can consider for older kids to help them manage money. Greenlight is a debit card for kids, and looks like your typical credit card. However, parents control what stores can accept the card and receive alerts when a purchase is made.
"(Parents) had this desire for their kids to be smart with money, but didn't have the knowledge or the time," said Tim Sheehan, CEO of Greenlight. "These topics weren't really being taught in school."
Anderson, the father of four, said around the time of the tooth fairy's visit to his kids, he started a banking account with each child to give them "an understanding about keeping (money) there and watching it grow." His kids earn "semi-regular contributions" by completing chores or meeting other goals.
He also makes sure to put those accounts under their name to capture their attention when statements arrive in the mail. "It gives the kid a sense of buy-in to it, but it also discourages them from spending it."
Anderson saw this strategy pay off recently when his two oldest kids wrestled with whether to purchase an Xbox video game console, even independently going online to find the best deal.
"They can feel a sense of pride and ownership they have this money in the bank and they can see it right there."
Like this story? Like CNBC Make It on Facebook!
Don't miss: This is the ideal amount to leave your kids when you die, parenting podcasters agree
This article originally appeared on USA Today.