Parent to Parent: Kids & savings

Little Trey already has plans for his pennies. 

Trey Bucch
"In my piggy bank!"

All that change adds up.

Sara Bucchi, mother
"When the piggy bank gets full, we take the money and put it into the college funds that they have."

Parents often save money for their kids, but more importantly, have they taught their kids to save for themselves?

A recent study found that 40 percent of parents admit they never taught their children how to manage their money.

Brian Beck, financial advisor
"Most parents want to help their kids and get them to save and they want them to start young but they don't tell because they have problems themselves."

With millions of Americans struggling with credit card debt, managing money can be difficult at any age.

Advisors say one secret to financial success is to start saving early.

Brian Beck, financial advisor
"As soon as the kids get a check, whether a birthday or holiday, open a savings account and when you open it explain it to the kids."

And if you give your child an allowance, teach them to set some aside.

Brian Beck, financial advisor
"Most kids think of it as free money. Why? They see their parents going to the mall or going out to dinner and they whip out the credit card and they say, ‘gee, I'm going to do the same thing,' and they don't realize the consequences until the bill comes."

So talk to your kids about paying off their credit card bill, like Jared's parents did.

Jared Sparks, sophomore
"They taught me you can spend money, but once you swipe your card keep the receipt and put the money back in the envelope so at the end of each month you have the money there, so you don't spend more than you have."

It's a lesson that really makes cents.

(Copyright 2007 Sunbeam Television. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)