Holding a job is one way for kids to get a taste of real life. And teens who work should be saving at least half of what they earn for college or for big-ticket high school expenses such as the prom. If you prefer that your kids concentrate on schoolwork and extracurricular activities rather than a job, that doesn't mean they have to miss out on real-world finance. Welcome them in to family discussions about such things as which car to buy and how to pay for it, how to cope with an impending layoff, or how much to spend on holiday gifts. That will give your kids an invaluable insight into the kinds of decisions they will have to make some day.
Cash is king.
Just as children need to walk before they run, they need to learn to manage cash before they can manage credit. If you've been setting limits with your children since they were riding in a grocery cart, it won't come as a surprise when you don't buy them a car for their 16th birthday. They won't even expect one. The Kiplinger Washington Editors, Inc.