For example, if the allowance is $5 a week, I would provide a child with four dollar bills and four quarters. I would minimally have the child get in the habit of setting 50 cents of the $5 away for long-term saving and investing.

I'd encourage kids at 5, 6, or 7 to start a dream journal in which they write down their goals or cut and paste and draw pictures of things they dream about. Encourage them to write about these dreams and describe them in as much detail as possible, including plans, money and other resources they will need to make them come true.