Hellobee Boards

I don't have kids yet, so my opinion is not be set in stone.

At the age of 3, I'd save the money for him/her in her account. As he/she gets older, I'd have them create a wishlist, and add to it (especially when we are in stores and they see something they like). When they receive monetary gifts, I'd have them re-evaluate their wishlists and see if the money will go towards saving for something they want

When LO gets money, typically 1/2 goes to her piggy bank and 1/2 goes towards us getting her something she wants.

I let my son have the money, he's 5 though, and understands price tags and what not.

At 3, or even 4, if he saw the money in an envelope, he would not give it up, though.

At this age - 3 and 1 1/2 - random $20 would likely go into their saving accounts. But if they get a bunch of money at their birthdays, I've put it towards a big present. When they are older, I'll probably save a portion and let them spend the rest.