Finances for young children

I wanted our children to have an allowance so that they won't ask me to buy them every little thing. My response when they do ask can be: "Did you bring the money to buy that?" rather than "No, I can't afford that/choose not to spend my money on that." While our daughters still ask for treats, our allowance set-up has cut down considerably on their requests for trivial items.
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Our long-term goal is for our children to understand how to manage their money responsibly. Right now in our home that simply means that they set aside a portion of the money they receive for tithe and a portion for savings. We gave them this bank for Christmas last year (they receive enough toys from other people: we only give boring gifts to them) and began doling out each week a dime for each year of the child's life. So now our 6yr receives 6 dimes each week and our 4yr receives 4 dimes each week. Those pennies accumulate in a simple piggy bank they received from an uncle and about once a month I help them sort them into their three categories. We count out 10 dimes. The first is put into the church (tithe) box; the second into the bank (savings); the remainder they can put into the store to use anytime they want or they can choose to put a larger portion into either of the first two boxes. I don't like how difficult it is to extract dollar bills from this particular bank, but by the time our children are receiving dollars in their allowance I expect them to be mature enough to handle a set of envelopes without losing the money. So at that point it will be easy to switch over.
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On Sundays, if we're not too rushed, each girl is encouraged to take out a coin from her church box and drop it in the collection basket. She can take out a second coin from her church box and drop it in the poor box after Mass.
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Once a month we visit our bank (credit union actually) where the girls each have their very own account. If they deposit $10 at a time, the bank gives a special coin they can save up to "buy" prizes from the bank's store. Now, it's rather hard to accumulate $10 once a year, let alone the several needed to gather enough special coins to buy a prize, when you only receive .40-.60 a week and maybe put less than .20 a month in your bank at home. So my husband and I agreed to give our girls an incentive: with nothing else worthwhile to spend their store money on anyways (only candy and toys), if they choose to use enough "store" money in addition to their "bank" money to equal at least $2 on the day we visit the bank, we will contribute the remainder to bring their deposit up to the $10 needed to receive the special coin.
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The remaining money from their allowances and special birthday/Christmas gifts has been used on trivial toys, candy, and once in treating Mama and Sister to special drinks at a local coffee shop. Both girls are a long ways from understanding the value of money, but this system has been an excellent first step in the process. And a bonus for me: much less begging for me to buy this or that item every time we enter a store. A bonus for my husband: he discovered that multiplying his age by .10 gave him more free-spending money than we were previously budgeting for the adults in our family. So he switched us to the [.10 x current age] plan also. Although he (and I) doesn't subtract 10% each week for tithe, he's already tithed off the whole income (not just the allowance portion), and the children's tithe is really just for training purposes since the money we give them has also already been tithed off of.
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Linked with Works for Me Wednesday, Fellowship Fridays, Modest Monday