Your teen is growing up quickly. Are you concerned about how they will handle money when they start living on their own? You can guide them now to help them build smart money habits that will last.

Be a good example.

Show your teen how to pay bills and spend wisely. Talk about the choices you make with money and how you manage household expenses. Share what it costs to cover basic needs like rent or house payments, gas, and groceries.

Let teens handle their own money.

Give them the chance to earn money by doing extra chores around the house. When teens manage their own money, they can start learning how to make smart decisions. Allow them to choose how they spend and save, but be there to talk about their choices. If they buy something and later regret it, that experience can teach a valuable lesson.

Suggest a part-time job.

Having a job can help your teen learn responsibility and earn money for their needs or wants. Make sure they don’t work too many hours so that their schoolwork still comes first.

Teach them to compare prices.
Show your teen how to look for better prices and deals. For example, they can decide whether they’d rather buy one brand-name item or a few items that cost less. Some apps can even alert them when something they want goes on sale.

Help your teen set a budget.

A budget can teach your teen to be in control of their money. Show them how to track what they spend on things like food, clothes, and transportation. Talk with them about the difference between needs and extras. Help them plan for monthly costs like a phone bill as well as fun expenses like going out with friends.

Suggest using money tools.

Budgeting tools like apps, spreadsheets, or computer programs can help your teen keep track of their money and savings.

Encourage saving.

Teach your teen to save a set amount every week or month. They might want to save for something big, like a new device, or for future needs like college. They can also save to give to a cause they care about. Apps that track savings goals can help them stay motivated.

Talk about credit and debt.

Help your teen understand how to use credit in a smart way. Talk about the value of having good credit and paying off debts. Show them how interest works using real examples, so they can see how much more things cost when paid with credit. Also, explain credit reports and credit scores so they understand how these affect their future.