Let me preface this by saying I was a 14 year old brat and I did get in as much trouble as I deserved for this... and though my opinion hasn't changed over the years I've just... become a little more tactful about getting it across.
When I was 14 our Sunday school leader did a month on dating and relationships, and of course it eventually moved to the topic of, "How far is too far?" He told us that there was an imaginary line on the human body that everyone should never touch beneath before they're married. Now naturally I assumed that line would be somewhere around the waist, or maybe a little higher for the girls... he then pulled out a diagram of the human body and proceeded to draw the line directly below the chin. He said, "This is called the 'Uh-Oh!' line. Any touching beneath this line is not okay." His wife was sitting in for that particular class, and I just looked over at her and said aloud, "Wow... I am so sorry."
I'm all for setting boundaries and limits... but to a point. Sex is one of those things I've come to understand that the more you blow it out of proportion... the more likely you are to do something stupid. Everything becomes alluring when it's "forbidden" and while I'm by no means saying you should teach kids to go have sex whenever they want, at the same time teaching them that all forms of physical contact lead to temptation that you have no hope of overcoming isn't healthy either. Temptation is a part of life. Hiding from it doesn't make you any better at resisting it, if anything it makes you worse at it. Enjoying physical contact with your partner is not wrong, and as long as you know yourself well enough to know how far would be too far, don't be afraid of possibly running into temptation. The more you encounter it, the better you become at resisting it. Kind of a part of growing up.
When it gets to the point where holding hands, hugging, or even giving a simple kiss makes you terrified that the next move will be in the bedroom... there's a problem.