Skip to main content


How To Teach Teens To Manage Money

Parents with teens are on the verge of raising young adults preparing to begin their first job or heading off to college. When teens get their first job, they may want to spend their first paycheck on a shopping spree. That is why it's so important to teach children age-appropriate money habits before getting their first job. Young adults face insurmountable credit card and student loan debt, teaching your teen positive money habits is essential. 

Children discussing money


Parents should encourage their teens to save money and set financial goals to understand the practice of budgeting, saving, and investing. Encouraging saving and goal setting with teens helps build a solid financial foundation for their future. In addition, knowing how to budget and save for goals can reduce the chances of getting into uncontrollable debt in the future. 

Money Lessons

Finance 101 for Kids Ad

Finance 101 for Kids: Money Lessons Children Cannot Afford to Miss can help your teen understand interest, budgeting, investing, and other basic financial lessons. Andal also covers the fees associated with a bounced check. Today's teen has probably never used a check or seen you use a check. However, they may receive a checkbook when they open their first checking account and should understand the responsibilities of the payer and the payee. Many other lessons can help you start the conversation with your teen about money management.

Thinking Long-Term

Saving can help teens prepare for financial responsibilities later in life because it can reduce the need to get into debt using credit cards or obtain loans with high interest rates. It can also show how putting away a little money can grow over a long-term period. Having a savings account in addition to an emergency fund can help ensure that you can pay for unexpected expenses with cash. Ultimately, preparing for financial obligations in the teenage years will set a solid foundation for budgeting and saving for future goals.

See my feature in Conversations To Have Once Your Teen Starts Earning Money.


Teens can learn how to balance a budget at home to be prepared for life after high school. Most college students leave home with limited knowledge of how to manage their finances. A survey by Piper Sandler found that teens spend 22% of their income on food and 21% on clothing. Spending will increase even further as the effects of the pandemic lessen. 

Survey results. Teen spending 22% on clothing and 21% on food.

For this reason, teaching your children to budget at home can help them manage future student loans, scholarships, and household expenses such as rent or groceries. It can also decrease the need for their parents to fill in the gap when they run short on cash.


Parents can start investing on behalf of their teens by opening up a custodial investing account. The money in a custodial account is in the teens' name and can be transferred after they turn 18. It's a good practice to have your teen by your side when you are investing on their behalf. It can help them understand how to invest, the market, and how market fluctuations affect their investments.

Continue The Conversation

It's essential to continue to talk to teens about money. Having continual money conversations can develop other questions that build on their financial knowledge. It's okay if you don't know the answer to their questions. You and your teen can learn together and realize that not knowing the answer is common. Constant discussions about money also imply that their financial situation should be monitored and adjusted as their financial goals change.


Popular Posts

9 Ways Employers Can Celebrate Juneteenth

What's one way a company can recognize and celebrate Juneteenth? To help you find ways to celebrate Juneteenth as a company, we asked business leaders this question for their best insights. From supporting Black-owned businesses to hosting an African-American guest speaker, there are several ideas that may help you bring your employees together to recognize and celebrate Juneteenth properly. Here are nine ways employers can celebrate Juneteenth and make a financial and social impact within your community and with your employees: Launch a Juneteenth Team-Building Event Invite an African American Guest Speaker Line Up Activities To Help Employees Reflect and Give Support Black-Owned Businesses Go on Museum Tours Celebrate Through Social Media Choose a Way To Actually Celebrate Together Play Trivia Games Throw Virtual Parties Launch a Juneteenth Team-Building Event A company can commemorate Juneteenth by launching a team-building event, where everyone is tasked with researching and pr

Top 4 Ways To Budget For The Holidays

Holiday gift-giving is a time of joy, and the expression you see on someone's face when they open that perfect gift can confirm that you found the perfect gift. Gisele Bundchen stated that "Christmas and the holidays are the season of giving. It's a time when people are kinder and open-hearted." When searching for the perfect gift(s), it's also essential to keep your budget in mind. Here are tips to keep your holiday budget on the right track. Photo by  Jakob Owens  on  Unsplash Budgeting for the Holidays Budgeting for the holidays begins by estimating what you plan to spend for gifts, travel, and food. If you have children, budgeting for presents keeps your budget on track by designating what you will spend on each child. If you have a significant other, agreeing on gift purchase limits for each other can help ensure that one partner doesn't overspend. You can also pre-plan your travel by budgeting at least six months in advance and establishing a limit for f

11 Professionals Share Tips on Asking For A Raise

What's one thing to consider when asking for a raise?  To help you with preparing to ask for a raise, we asked HR managers and CEOs this question for their best insights. From communicating challenges you overcame to presenting tangible numbers and results, there are several tips that may help you ask for a raise in the future. Here are eleven things to consider when asking for a raise: Communicate Challenges You Overcame Consider Asking For Perks Prepare for the Worst Ask for More Than You'd Settle For Make Sure Your Industry is in Good Shape Expect a Waiting Period Determine Why Your Boss Should Give You a Raise Come Into The Meeting Well-Prepared Plan a Year Ahead Consider Your Timing  Present Tangible Numbers and Results Communicate Challenges You Overcame Your boss and company must see your real growth. Therefore, instead of raving about your achievements, narrate the stories of how you encountered a challenge, made a superior result, and solved an issue. When we're ne