Your grandchildren may have an allowance from parents or you may provide one. Offer grandchildren the opportunity to earn extra money, not for regular responsibilities but for extras like yard work or washing the car. Teach them about saving money. Your grandchildren should set a savings goal - how much they want to save and what they'd like to save for. For younger grandchildren, a photograph or magazine picture of what they are saving for can help reinforce the goal.
Older grandchildren can grasp longer term goals, like that first car or a college education.
Even if you can afford to buy that bike, doll, or set of rollerblades for them, help your grandchildren to save up for it. Delaying gratification is hard for children to do, but you can help them practice this skill. Help them develop a budget from their allowance and other money so that they can see how long it will take for them to save what they want. Every time they are given or earn money, part should go into savings. Being successful at saving money means sticking with the plan.