6. Cash. Younger students may not be ready to handle money yet, so if your child's school has an online payment option for lunch, that's a better bet than giving your child cash. Paying for lunches online gives parents peace of mind that the money won't get lost or spent on ice cream and snacks instead of lunch. "Every day at school, we hear announcements of money that has escaped from the child and found on playgrounds, bathrooms, hallways, and accompanied by lots of tears," says Taylor. "If you send money, place it in a labeled envelope in a zippered section of the book bag or on the floor of the book bag. Don't pin an envelope on kids' clothes."
[See How to Save Money on Toys for Your Kids.]
7. Credit cards. With student-loan debt skyrocketing, Campbell says college students don't need the added burden of credit card debt. "Most of them do not have an income to pay off these credit cards," he explains. "They can establish their credit once they get out of college and have a job." Instead of getting a credit card, he suggests using a debit card and if parents are paying for living expenses, transferring money on a regular schedule. "I think it's a great time to learn how to live within a budget," he adds.
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