It’s not easy to find a summer job this year, but if your child is lucky, they’ll be taking in a nice paycheck from caddying, babysitting or maybe even waiting tables. It’s the perfect time to teach your son or daughter about financial responsibility, and CNN Money has some tips:

1. Talk about Taxes

Teens will probably be shocked to find out that so much of their earnings will be taken out for taxes. It’s a good idea to explain how this works before your child thinks about what they’re going to buy with the money they haven’t earned yet. Explain the difference between income taxes (which most teens are likely to get back when they file tax returns) and FICA taxes (which they won’t).

2. Bank it

Take your teen to the bank and help him or her open a checking and savings account. You’ll have to co-sign the accounts, but it’s worth it so your kid can start learning to use a debit card while you’re still able to do a bit of supervising. Be sure to explain the costs involved with using another bank’s ATM, and overdraft fees. Many people don’t use check registers anymore, but it’s probably best to explain how they work, and also show your child how to track accounts online. If they know all this before going to college, they’ll be in good shape.

3. Suggest saving

Kids will immediately want to spend their money – and without having to pay rent and other bills, who can blame them? But if you talk about setting aside a certain amount of money from each paycheck toward a desired item, like a new iPod, a prom dress, etc., they might start to learn how to save responsibility.

4. Let them make mistakes

Don’t be too controlling, or your teen won’t really learn how to manage his or her own money. It’s okay if your kid blows an entire paycheck on a pair of designer jeans – it’s all a lesson!

5. Talk about credit cards

This tip is from me, since I wish I could travel back in time and not use credit cards! It doesn’t really come into play for high school students, and new credit card legislation has restricted companies from preying on college students as much as they used to, but it’s a good idea to talk about credit early. You don’t want your son or daughter to get into a ton of debt because he or she didn’t understand the system!

Photo: Kids-In-Biz