While I think it is very important to teach children fiscal responsibility should we encourage spending at a young age. I didn't have any real money until I got my first job at sixteen. Then it was all cash. No bank account. No credit or debit cards. Just a wad of cash. Today standards are a little different than 13 years ago. No one has cash and debit cards are much easier to get. I probably should have gotten a bank account and learned the value of saving money. However, at the same time should parents introduce credit cards into children's lives? The good thing with cash is that you can count it. So you know how much you have left. With a prepaid credit card you can just spend and spend. Sure you can "try" to teach your kid how to balance their budget, but do you think they will listen? With cash you have to balance. "Damn, I only have 5 dollars left." With a card it is like "I'm gonna buy stuff till the card won't work anymore." I had a friend in high school who had to write down and keep receipts of everything he bought. Then at the end of the week he kept a log so his father could teach him the value of "junk". I liked this idea, but boy was I glad my parents didn't force it on me. Being in my 20's and having gone through college and the first real job I've realized that it is impossible to save money. Between rent, health care (if you are lucky), food, gas, fun you can't really save much of anything. Should we be worried about it? Luckily, I am in a much better financial position than I was at 25 and can begin to build a savings worth more than 1,500 dollars. Nick's rule - If you don't have $1,500 in your account at all times then you could be in for a horrible nightmare. I think all these financial analysts who tell young adults under 35 that they should begin to plan for retirement live in LA LA land. Marriage, house, kids.... Most of these things commonly happen before 35. You expect people making under $40,000 a year to save lots of money. Invest in your markets that have failed. Buy real-estate (that all my friends did because it was such a good investment after college). BALOONEY... I think you should teach kids to keep a few grand under their bed. In cash.... Just in case tomorrow their bank gets closed down. Obviously, I am over-exaggerating, but lighten up on the kids. Quit making life out to be the board game of life and let them have fun. Don't pressure them to much. Do you have any idea how much stress a person nowadays go through from 13-35? Seriously?