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Jeanette Tucker was tired of bleeding cash each time one of her sons wanted designer jeans or baseball cards. So she put her foot down.

"I started giving them an exact allowance each month," she says. "They were responsible for everything but school supplies. There would be no advances. If you blew it, you blew it," Tucker says.

Giving her kids a fixed $50-a-month allowance was one of the smartest things she ever did as a parent, says Tucker, a family economics specialist at LSU.

It helped teach .her boys to spend responsibly.

Michael, 24, is now working on his MBA at Western Kentucky University with an emphasis in finance. John, 20, is a senior at LSU majoring in construction management. He hopes to start his own business.

As a professor in the department of family and consumer sciences Tucker's passion is teaching kids dollars and sense.

America's youngsters have a lot to learn.

The Jumpstart Coalition for Personal Financial Literacy recently gave 4,024 high school seniors from around the nation a basic finance test covering subjects such as paying taxes and using credit cards. The students missed, on average, half the questions. Louisiana kids did slightly worse.

"Financial literacy is dropping," Tucker says. On July 30, she was to host a training session to help the state's high school teachers bring finance into the classroom.

But it's going to take more than that, she says.

Most kids learn about money at home, so it's up to parents to help their children get wiser.

Dollars and sense

Regular allowances are a good way to teach kids to budget and save.

"By the age of 6, kids can tell the difference between a dime and a nickel," Tucker says. That's a good time to start giving them a regular allowance.

But how much? Glaudette Reichel, a Baton Rouge mother of four daughters ages 6 to 16, says 50 cents for every year of age is a good rule of thumb.

"Every birthday, they get a little raise," she says. Her girls add to their allowances by doing odd jobs around the house that go above and beyond their usual chores.

Give kids the freedom to make spending mistakes, Tucker says. "They need to learn that money is a medium of exchange. It is limited, and it can be used wisely or frivolously."

Like many parents, she grimaced when her sons spent large chunks of cash on toys that quickly broke.

But she didn't step in.

"They're going to make mistakes, but nickel and dime mistakes are better than hundreds and thousands of dollars mistakes down the road," she says.

A few boo-boos with cash are okay, but don't let kids play around with credit cards. Teach them about the concept, but hold off on le plastique until a child has proven himself or herself, the experts say--preferably around college age.

Help kids write out a budget so they can track their spending. Involve them in family money talks. It doesn't have to be complicated.

Michael Slaughter, director of training and development for UC Lending in Baton Rouge, used a trip to the beach to involve Christopher, his 8-year-old son, in the family's finances.

"We were in the store, and he said, 'Can I have that?' And I said, 'No, we're going to the beach. We want to have money to spend at the beach, right?'"

If your children are teen-agers, they can write the checks that pay the household bills, Tucker says. This helps them realize where money goes in the real world. "They say, 'The cable (television) costs this much? Wow.'"

Watching it grow

Bank accounts drive the point home for kids. Slaughter, 33, can still recall opening his first savings account at what was then Louisiana National Bank. "My first deposit was $35 or $40," he says with a chuckle.

Parents can teach their kids how a 401(k) works by matching whatever their youngsters save.

Kids are more apt to save if they're hoarding for something concrete, Tucker says. "When you're 10 years old, college is light years away. But a baseball glove is right now."

In high school, kids often wish for wheels. Use that craving to teach them about insurance premiums, loans and the process of saving for something big. When Slaughter wanted a car, he saved his money and got help from his dad, Bill.

"Could I have afforded to give him a car? Sure," says Bill Slaughter, who owns SSA Consultants Inc. in Baton Rouge. "But giving your children too much is a terrible thing to do because they don't learn the value of it or what it takes to get there."

Sharing is another important part of having money. Encourage kids to donate some of what they save and earn to the needy or to a church group, Tucker advises.

What about investing? Teens love to do it. It's easier for them to get the hang of it if they can follow specific companies they know--Wrigley, McDonalds or Disney, for instance.

"Kids are pretty savvy investors," Tucker says. "They're good at picking products because they're very brand conscious. They can see that every kid in their class is wearing Nike."

ON THE WEB

There are a number of financial Web sites geared for kids. Here's an overview:

For kids ages 6 to 9: www.fleetkids.com.

Sponsored by Fleet Bank, kids can learn about money with online games.

For kids 10 to 13: www.strongkids.com.

Learn about investing, earning and saving money. Includes explanations of IRAs, trust funds and savings accounts.

For kids 14 to 18: www.youngbiz.com.

Contains inspirational stories of kids who started their own businesses.

For parents and kids, too: www.kiplinger.com/managing/kids. Advice for parents on financing college and helping a child set up a checking account. Advice for kids on saving money.

RELATED ARTICLE: Quiz: are you money wise?

The following questions appeared on a test given to 4,024 high school seniors by The Jumpstart Coalition for Personal Financial Literacy. See how you--or someone young you know--stacks up.

1. Many people put aside money to take care of unexpected expenses. If Susan and Joe have money put aside for emergencies, in which of the following forms would it be of LEAST benefit to them if they needed it right away?

a) checking account.

b) savings account.

c) invested in a down-payment on the house.

d) stocks

2. Matthew and Alicia just had a baby. They received money as baby gifts and want to put it away for the baby's education. Which of the following is likely to have the highest growth over the next 18 years?

a) savings account

b) checking account

c) U.S. Savings Bond

d) stocks

3. Many savings programs are protected by the federal government against loss. Which of the following is not?

a) U.S. Savings Bond

b) certificate of deposit at the bank

c) U.S. Treasury Bond

d) bond issued by one of the 50 states

4. Which of the following statements best describes your right to check your credit history for accuracy:

a) you cannot see your credit record.

b) your credit record can be checked at any time for free.

c) if you are turned down for credit based on a credit report, the record can be checked for free.

d) all credit records are the property of the U.S. government and access is only available to the FBI and lenders.

5. If you have caused an accident, which type of automobile insurance would cover damage to your car?

a) term

b) comprehensive

c) collision

d) liability

What kids should know about money & when

At 8 years or younger, kids are read to:

* Receive an allowance

* Open a savings account

At 9 to 11 years, kids are ready to:

* Know who their guardianis in case of parent's death

* Help create a budget

* Be responsible for their clothing budget

At 12 to 14 years, kids should:

* Know family monthly living costs

* Be told the family income

* Help keep records of family income

At 15 to 17 years, kids need to:

* Know about family car insurance

* Have their own checking account

* Know about family life insurance

* Discuss major financial decisions

* Know amount of family income and debt

* Figure a net worth statement

At 18 to 20 years, kids ought to be:

* Fully responsible for their own credit cards

* Able to apply for personal loans

* Fully responsible for a checking account

* Filing tax returns without help

* Managing their own financial assets

Source: Dr. Sharon M. Danes, professor, Family Social Science Department, University of Minnesota