Raising Fiscally Fit Kids

I'm increasingly frustrated by this notion that children must be introduced to adult things so soon in life, such as credit cards and working for pay.

And for many teens, working doesn't mean helping with the household bills or a college fund. It means they have more money to dispose of when their parents drop them off at the mall to buy stuff they don't need.

"It would seem, ironically, that they've learned the lesson: A buck will buy stuff, and lots of bucks will buy more," Bodnar writes.

If you're intent on teaching your children certain job-related skills, encourage them to volunteer, she says.

"Kids are often given more responsibility in these positions than in paying jobs, and they get exposure to a variety of careers and to slices of life that they might not normally come in contact with."

Bodnar isn't against teens working, particularly during the summer. But she says parents should control how many hours they work, especially during the school year, and what they do with the money they earn.

In fact, she says that as long as you are supporting your children, you are entitled to at least a portion of their income unless you give them, either by formal agreement or practice, the right to spend and manage their own earnings.

"I certainly don't advise confiscating your kids' paychecks," she says. "But it's appropriate for you to sit down with them before they start working to hash out an agreement on how much you'd like them to save, and for what."

Because Bodnar's book is peppered with questions from parents and children, it's an easy read. I suggest you take the quiz at the front of the book. It's a good test of how money smart -- or challenged -- you are. For example, how would you answer this question?

Your son is heading to college in the fall and will need spending money. You:

a) Tell him that if he stays in his room and studies, he won't need spending money.

b) Agree to send a weekly allowance.