TUSCALOOSA, Ala. | While his friends spend their money on video games and candy, Nicholas Sella saves most of his $8 weekly allowance, investing part in stocks and stashing the rest into a savings account.

But as the current credit and mortgage crises demonstrate, not everyone is as financially prudent as this 14-year-old from Tuscaloosa -- many people are in over their heads with debt and have too little in the way of savings. A major part of the financial distress of many Americans, experts say, is that they never had good lessons on saving and spending when they were growing up.

There are signs that the current generation of young people may have a better education. Although a personal finance class was a requirement for high school graduation in only seven states last year, according to the National Council of Economic Education, alternatives such as camps, interactive Web sites and investment programs targeting children are emerging to help fill the gaps.

Still, classes and other activities can only do so much. For good financial practices to really take hold, parents should lead by example and include their children in household money matters early on, according to those active in finance and financial education programs.

"Kids need to get involved with money and they need to handle it," said Bob Nusbaum, a financial planner in Pittsburgh, who said exposure can start as early as age 4 or 5. "Parents need to involve their kids in financial decisions as soon as they are old enough to grasp it."

Jan Brakefield, an assistant professor at the University of Alabama, ran Camp Cash at the school for the first time this summer and hopes it will become an annual program. Nicholas Sella, who owns stock in Deere & Co., Altria Corp. and McDonald's Corp., was one of 18 middle schoolers who attended the two-week money management camp.

"I just believe that at this age it's more likely to stick with them for life," Brakefield said.

Once kids hit high school, she said, they are more interested in spending money on dating and trendy clothes and gadgets. She said good financial instincts -- saving, delayed gratification, investing -- need to be instilled before that point.

Brakefield tried to incorporate as many tangible examples as possible to keep her students' interest. On the first day of camp, she gave each student $5 and took them to a store to buy something to write with while at camp. She said they could spend as much of the money as they wanted and pocket the rest. Students then had to explain their choices, and the group discussed the different strategies.

Through in-school and after-school classes, special events, camps, rallies and conferences, a Florida-based company called YoungBiz teaches teenagers about business, entrepreneurship and personal finance.

"It's all about empowerment, whether it's entrepreneurship or financial literacy," said Bonnie Drew, the company's senior executive vice president. "When you believe that you are smart enough and capable of making decisions about your employment and your finances, you will make better decisions."