Good Money Habits to Teach Your Teen

If you have a teenager at home, make sure you are teaching them good money habits. Now that they’re older, set them up for success throughout life with more in-depth financial goals. Here are some things to try with your teenager.

Learn How to Earn

One of the first money goals for your teen is to learn how to earn and manage their own money. Encourage them to apply for jobs so that they learn the process of working for a paycheck. If it’s their money — their spending and saving — they’ll be much more likely to take it seriously.

Learn How to Save

Teach your teen to set up a high-interest savings account. Shop around for the best options. Consider credit unions and online banks to maximize your interest savings.

Learn to Budget

Before they get that first paycheck, sit down with them and help them create a budget. Set up sections for fixed and discretionary spending. Be sure to include a section for savings, both long and short-term.

Learn to Set Goals

Now that the budget is in place, work with your teen to craft it based on their goals.

• Maybe they want to save up to buy a car.
• Maybe they want to head to the beach next weekend with their friends.
• Discuss their long and short-term goals in detail, then make the budget align with them.

Do One Thing: Help your teen create a budget that works for them. It’s a simple yet vital financial tool that will serve them well throughout life. You can get access to free budgeting tools when you sign up for our Financial Wellness powered by Enrich program. You’ll have free access to personalized tools and resources designed to support everything from small habit changes to your biggest financial goals.

Original article by Chris O'Shea and adapted in partnership with SavvyMoney.