Financial capability for teens

Financial capability is a vital skill that empowers individuals to make informed decisions about money, savings, and investments. Let’s explore tips and resources to help you guide the teenager in your life toward financial capability.

Start early

Financial education should begin at a young age. Parents and caregivers are encouraged to introduce basic financial concepts to children, such as saving, budgeting, and the value of money. Starting the conversation can jumpstart positive habits.

Open a savings account

Help teenagers open their first savings account. This provides a practical introduction to banking, interest, and the importance of saving for future goals.

Budgeting basics

Teach teenagers how to create a simple budget. Show them how to track income and expenses, set financial goals, and make informed spending decisions.

Money management apps

Explore user-friendly money management apps designed for teenagers. These apps can make budgeting and tracking expenses more engaging and interactive.

Part-time jobs

Encourage teenagers to seek part-time employment or gig work. Earning their own money can teach them responsibility and the value of hard work.

Financial capability workshops

Many community organizations, schools, and credit unions offer financial capability workshops for teenagers. Encourage participation in these programs to gain valuable knowledge and skills.

Credit education

Credit can be a powerful tool when used correctly. Discuss the basics of credit, including credit scores, credit cards, and loans. Emphasize responsible credit use and the potential long-term consequences of poor credit choices.

Saving and investing

Introduce the concept of investing and the power of compound interest. Help teenagers understand that saving and investing early can lead to financial security in the future.

Real-life examples

Share real-life examples and stories of financial success and challenges. Hearing about others' experiences can make financial concepts more relatable.

Online resources

Point teenagers to credible online resources, such as financial literacy websites, videos, and podcasts, that offer educational content in an engaging format. BALANCE, for example, offers a dedicated and confidential financial coach to provide free specialized counseling sessions.

Family discussions

Encourage open discussions about money within the family. Sharing financial experiences and decisions can provide valuable lessons and insights.

Remember that financial capability is a lifelong journey, and the foundation for responsible financial habits should be laid during the formative years. Our preferred financial wellness service providers are an excellent option if you’re interested in learning more about how you can prepare yourself and your teenagers for a financially secure future. The Money Mammals Kids Club helps parents raise money-smart kids and even offers ADOLESCENT$, a new portal for tweens and teens.  As a Friend of the Foundation, you also have BALANCE on your side to help you with free, one-on-one financial counseling, debt management services, and financial education resources.