Study: Children failing to save money

As kids start going back to school, there's another lesson at home that they should be learning.

Some children are raking in the dough from a weekly allowance, but some aren't profiting as much as they could. A new survey from the American Institute of Certified Financial Planners finds that the average kid makes $780 a year in allowance, which breaks down to about $15 a week.

That kind of money is plenty enough for an iPad and lots more, if only the children were to save up. Although, the survey shows that's not happening.

According to the study, 61 percent of parents pay their kids an allowance, and more than half of which start by the time their child turns 8 years old. Most make their children work for it in some way, with chores or with school performance.

Of that group, only 1 percent of parents say their child ever saves any of it. One reason - parents may be missing an important opportunity to talk to their kids about money. Discussions about good manners, eating habits and grades tend to come into play far ahead of money management.

To remedy that, the AICPA suggests setting parameters.

Don't just hand your kids $15 a week. Make sure they understand why they're getting it, and how they can lose it. Allowance should be earned, not expected.

It also suggests setting goals so children can start to learn budgeting. Divide up the allowance for short-term goals like new toys or outings with friends, versus long-term goals such as big-ticket items or even college.

Finally, talk about your own money with them, like what you're saving and how you tackle your budget.