Summer's here and the kids will soon be out of school. If your son or daughter is going to be working this season, we recommend taking the opportunity to teach some fundamentals of good financial behavior.

Have your child save 10% of her take-home pay in a money market or savings account. Developing this habit early will pay off in later life. She will learn to live on less than she earns and form a savings mentality. In addition your child will learn how to delay gratification - something that derails many savings and retirement plans.

Encourage your young worker to open a Roth IRA. She can contribute up to the lesser of $5,000 or total gross income. Roth IRA contributions don't garner a tax deduction, but since most children are in a low tax bracket that isn't a big loss. The benefit of the Roth comes at retirement, when all withdrawls (contributions plus growth) are tax-free. If your retirement seems like a million years away to your child, remind her that contirbutions can be withdrawn tax free after 5 years as can withdrawals used for a first-home purchase. The power of tax-deferral at such a young age is huge - a 16-year-old with $5,000 in a Roth IRA that earns 7% will have $137,000 at age 65. Parents and grandparents may want to consider making a gift to the child by contributing to a Roth account from their own funds (with all contributions from child, parent, and grandparent subject to a combined $5,000/gross earnings limit.)

Finally if you are hiring your son or daughter in your own business you can save too. No social security tax is due when sole proprietors or husband-wife partnerships hire their children who are under age 18. FUTA (Medicare tax) ins't owed until they are 21.

And for the college grad: You're done with classes and tests and ready for real life lessons. Begin on the right foot by remembering and practicing these money management tips:

Live within your means. This is best shown by your ability to pay all of your bills in full every month, including your credit card. If you can't do that then you need to cut back on your spending...if you have student debt make sure you don't miss a payment. Build an emergency fund of at least 6 months of living expenses. This will help tide you over in the case of a job loss or an unexepected bill. Don't know what you spend in 6 months? Track your expenses by using Quicken or even a notebook. Note what you spend so you can make smart decisions. Know your credit history. Get a free credit report at least once a year from AnnualCreditReport.com. Building a good credit score is very important as it will enable you to get better rates on loans and even a better job - many employers are now asking for credit reports from job applicants.

And a tip for parents: give your graduate the gift of meeting with a financial planner. There is much we can help them learn, from budgeting to paying off debt to starting a retirement plan.

Working with a professional will help your young adult feel more like a "real grown-up" than hearing the same advice from Mom or Dad.