Compassion comes with empathy.  If the child is sensitive to the feelings of others then it is easy to develop compassion for the poor, the disabled, the sick, and the unfortunate.  Toddlers can easily understand this by examples.  Let your child put the money in donation boxes set-up by charitable organizations, but not giving alms to the street beggars.  Taking care of small pets like puppies or kittens is a good way to develop compassion.  Parents should communicate to the child their feelings of sympathy for the sick and the disabled whenever seeing them in the streets or on TV.  Talk about why it is very wrong to make fun of people who act or talk differently. Let the child help sort out old clothing and toys to be donated to the Salvation Army.

Being compassionate will help kids find meaning in their lives when they grow up.