Many children know how to send text messages and upload photos to MySpace.com, but when it comes to financial matters, they appear far less savvy.

When 3,006 seventh-graders at 20 schools across North Carolina were quizzed about credit cards, spending, saving, budgeting and other financial basics, the majority failed.

Students scored an average of 47.7 percent, according to the Department of the State Treasurer. Only 30 percent knew that savings accounts are not very risky and a third said that credit cards were a form of cash.

The results lend support to efforts that seek having schools teach saving, budgeting and credit along with the three R’s. Kansas University’s School of Business is launching a new course next year – FIN 101: Personal Finance – designed to teach non-business majors the basics about avoiding credit debt, developing a budget, saving for retirement and more.

Here are some suggestions from some finance professionals – including Maureen Dolan Rosen, founder of The Cash Management Connection and author of “Kids-cash” – of what parents can do this summer to put their child on a financially sound path:

1. Think eBay. EBay is an excellent way to get rid of clutter and learn about the concept of supply and demand. Most children will be shocked to find that they can get only $10 to $15 for a Madden ’07 PlayStation game that cost $50 new. Yard sales also teach money basics.

2. Start a business. This can be a neighborhood helper service (washing cars, mowing grass, doing odd jobs) or a pet-sitting service. If the child has computer skills, use them. The lemonade stand still works just fine, too.

Parents can show their children how to set up a budget, and the children can be responsible for advertising and scheduling. Who knows where this could lead?

3. Work at home. Have children do odd jobs that are not part of their normal chores, such as cleaning out the attic. Agree on hours to be worked and price. Sign a contract to make it official.

4. Start a newspaper for your street. It can include pictures from birthday parties, birth announcements and interviews with some of the older residents. Charge 10 cents a paper. Put it online if your child knows how to build a Web page.

5. Sell vegetables and flowers from the family garden. Of course, the child should help in the planting, watering and harvesting.

Five ways to save

1. Open a savings account. Have your child decide what percentage of earnings he or she will save. An incentive to save could be a matching amount up to a certain dollar amount. Take children to the bank and have them go through the whole process with bankers.

2. Open a Roth IRA. If your child earns money with documentable income (parents need to keep records of the money earned), they might be able to open a Roth IRA. Contributions can later be withdrawn tax-free and penalty-free if used for educational expenses.

3. Comparison-shop. EBay could help here, too. Children will see that they don’t need to buy everything new. Use print or online resources such as PriceGrabber.com or NexTag.com. Consignment shops and yard sales are other tools.

4. Count coins. Get a coin sorter, preferably one with a clear case, because children like to see their money. Ask your child what financial goals he or she has, then help set up a system to reach that goal.

5. Open a 529 college savings account. Allow children to be a part of the process and to help choose their investment strategy. Go to a college’s Web site and show them how much tuition is. Their own savings can be added to the 529 plan.

Five ways to teach

1. Talk. Be honest with your children about your own money mistakes, and then be a good role model. Allow them to make their own mistakes. Don’t bail them out.

2. Grocery shop together. Put your children in charge of picking certain items to buy and help them compare items by the price per ounce. Put them in charge of coupons, too, and have them add up all the money saved.

3. Buy stocks. Allow them to choose the companies. Have children track the stock and discuss why a stock might be going up or down. There are Web sites that can create mock online portfolios.

4. Play Monopoly and other games. This improves adding and subtracting skills, and teaches children how to make change.

5. Set up a family store. Have the children choose the items to stock – pencils, video games, stickers. They can earn money (real or tokens) by doing chores or exhibiting good behavior and then spending it in the family store.