Parenting : Kids Take These Lessons to the Bank : Parents advised to take active role in helping children learn to save and properly manage money.

There’s more to teaching kids about money and restraint than saying no to every candy bar and toy request. But parents who simply hand their child a piggy bank and hold their breath aren’t doing enough either.

In the book, “Money Doesn’t Grow on Trees,” (Godfrey & Edwards, $11) author Neale Godfrey advises mom and dad to take a more active role, starting to talk to children about money as soon as the youngsters turn 2.

Early lessons include differentiating between coins--a skill that becomes important later as children learn to count change. By the age of 5, they should have a piggy bank, advises Godfrey, and by 12, they may be able to manage a clothing allowance. Above all else, Godfrey emphasizes, parents should stress the relationship between a job and its payoff and never pay children for unfinished chores.

Twelve-year-old Benjamin Weiss of Sherman Oaks understands the value of a dollar better than most children his age. Benjamin, a student at Adat Ari El Day school in North Hollywood, has about $2,000 in his savings account at Home Savings of America. The sum consists of saved allowance funds and money received for household chores, neighborhood gardening, baby-sitting for his 5-year-old sister and occasional gifts. Though the youth admits to spending some of his money--and even donating some to charity--he places a high priority on saving.

“Saving is important, so you will have money when you are older,” says Ben.

Ben’s money management savvy earned him a first-place award in a Math You Can Bank On contest sponsored by Wells Fargo Bank and The Times. Ben developed a hypothetical MacIntosh computer program to manage money he earned during six years of mowing lawns. The program took into account earnings, interest rates, inflation and depreciation.

Ben’s mother, Vivian Glucksman-Weiss, says she and her husband, Mitchell Weiss, do exercise their parental authority when it comes to Ben’s savings plan. “We make him put (his money) in the bank,” she acknowledges, “but every once in a while he buys something.” Recent purchases include a pair of Doc Marten shoes and assorted compact discs.

Though not all kids Ben’s age are concerned about the distant future, some save money to handle ongoing financial needs. Rachel Cantrock of Calabasas hoards earnings from baby-sitting and chores, she says, in case she wants something her mother doesn’t feel she needs. Such frivolities include makeup, troll dolls and assorted decorative things for her room.

Rachel’s mother, Gayle Cantrock, laments that many Los Angeles children do not appreciate the value of money. She believes, though, that in subtle but effective ways she has instilled a respect for money in her own children. For example, if she and Rachel are shopping, Cantrock won’t necessarily purchase a pair of shoes her daughter wants. Mom says that 18 pairs of shoes are enough, and it’s up to Rachel to buy the new ones herself or pass. Knowing how to distinguish between need and want is a valuable lesson, Cantrock believes.

Whether the young consumer has a few extra dollars or thousands, banks work hard to win their business. Home Savings of America, where Ben banks, is committed to youngsters’ financial education. The bank’s adopt-a-school program sends branch managers to area schools to teach children the importance of savings and provide information on how to set up no-fee savings accounts.

Wells Fargo Bank offers a special Club WF-1 program to savers under age 18. Members get a personalized club card and an information packet that details the services they’re eligible for. These include opening savings and/or checking accounts and receiving an ATM card. According to program guidelines, parents must consent, apply with their minor children and act as account custodians. There are no monthly fees levied for youngster’s accounts (though some fees may apply for ATM withdrawals.)

Through such efforts, banks try to encourage financial responsibility among young people. Wells Fargo spokeswoman Kathleen Shilkret says that the implications of helping shape the behavior of young consumers extend far beyond individual account management. It could be, she speculates, that by teaching young people good habits, the massive credit card debts that plagued the leveraged 1980s might be minimized in the 90s.

“These kids are the future. The only way they will learn is by seeing the consequences of whatever decisions they make,” Shilkret believes. If they learn when they are young, in a controlled environment where the stakes are relatively small, she adds, “they will be more responsible adults.”