Money Smarts Blog

When your kids were younger, they probably asked for things like bedtime stories or bike rides. Now that they're teenagers, their requests often involve asking for money—your money. How can you manage their cash requests, avoid money arguments, and teach them financial responsibility at the same time?

Here are a few tips:

Use teachable moments: Take advantage of everyday interactions with your teen to impart money lessons. For instance, while shopping together, discuss your purchasing decisions or explain why you might choose to postpone a purchase.

Offer practical experience: Hands-on activities are more effective for teens than simply hearing about it. Have your teen create the weekly grocery list. When they accompany you to the store, they'll see firsthand how much of the family budget is allocated to groceries.

Model money monitoring: Review your teen's weekly spending together. Discuss whether their purchases were wants (things that made them feel good) or needs (essentials like a new jacket to replace one that no longer fits). Explore how they might have spent their money differently.

Introduce plastic: A debit card can give your teen a sense of financial independence while teaching them about managing money, budgeting, and making responsible spending decisions. Start by explaining how the card works, setting up spending limits, and monitoring their transactions together to ensure they understand the importance of tracking their expenses.

Talk about the future: What's the game plan after high school? If college is in the mix, let's figure out what expenses your teen will handle. As they start dreaming about careers, it's also the perfect time to chat about saving for retirement. Believe it or not, it’s never too early to start planning!

Teaching your teens about money early can help them develop a healthy relationship with money. It's all about balancing guidance with giving them the freedom to make their own financial decisions. These lessons will equip them with the skills to manage their finances responsibly. As they grow more independent, they'll appreciate the valuable money lessons you taught them.