How to Make Kids $$$$ Savvy

It's never too early to get savvy about money. The Journal's Jonathan Clements explains how he's put his teens on the right track.

1. Delayed gratification: When they spend their own cash, they make better decisions.
2. Pace yourself: The Clements kids had to make a 3-month allowance last.
3. Family values: Stories, not lectures, get the right values going.
4. Pile on the rich: Clements disparages opulence.
5. Long-term compounding: Choose annuities that incentivize waiting.

6. Tax-free growth: Clements started a Roth IRA ASAP.
7. Build homeowners: Mutual funds will mature when it's time to buy.
8. Grow good credit: List kids as joint account holders on credit cards.
9. Don't fund blowouts: Clements promised never to throw a $30,000 wedding.
10. Pay for school: Make your priority debt-free college grads.
11. Setting expectations: It was never the figures that mattered, just the principle.
12. Finances as education project: The savvy kids had family investment contests.

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