At the same time, retain some control, especially if you suspect your children may be using their money in a manner that goes beyond unwise, to unhealthy or downright dangerous. Even if they earn their own money, you still have a right to know how it is being spent. Responsible spending is only part of what children need to learn about money. They also must learn how to save. Also, be sure to keep them posted on the account's status, showing them their bank statements and interest earnings.
Some financial institutions welcome children's accounts and can make saving fun and educational.
Encourage children to sock away a percentage of everything they earn or receive. However, avoid strong-arm tactics. Let it be their decision. Help them identify a reason to save. Socking money away for its own sake is boring, and rarely works.