For any parent with teenagers or for those who remember their teenage years, it is possible you recall how challenging money management was way before you started paying utility bills, mortgage and loans. Essentially, the reason is teenagers face a lot of constraints budget wise and have a lot of needs right from long night outs with their age mates to purchasing top of the range cloths and sneakers.

Saving hard

It is also true teens have the hardest time of saving for a future that seems very distant and seems to be far away and impossible that setting aside some part of their funds is very difficult. In case you would like to give your teens advice and tips that will change and help them to avoid getting into debt later on there are many ways you can do this. Lots of teens turn out to be very reckless financial managers because they did not receive any tips and advice back at home.

Some parents think financial topics are covered in school while others are not confident enough to talk about it with their children and they end up missing on very critical fundamentals. The last thing you should do is assume your teens know about money and how to handle it. You must tell them, particularly if they have started driving and the insurance bill of the family goes up by over $1,000.

Check account

Not many teens in senior high school have checking accounts while some do not even have bank accounts. Essentially, after teens have left home and set up their own accounts down the line and never went through any parental training, the result is that they make really costly financial blunders. Financial advisers believe once teenagers have started earning some income from a job, opening checking accounts for them is very important, whether it is parent-teen joint account or any other.

They should be taught how checks are written, reconciling bank statement and their accounts among others. As much as mistakes will definitely take place, you might want to look for options friendly to the teen, like bank accounts charging teenagers a lower overdraft charge. Debit cards are also a wonderful option for teenagers and training for the use of credit cards in future.


Of all the things you can do to you child, the worst is not to showing them how to budget and failing to let them see it in practice in your life. Most college students have been found to pay their bills late, due to forgetfulness while a good number of them simply run out of funds and cannot write checks.

Real life money examples

It is important for parents to let their teens see how real life money concepts such as saving for an emergency can really help. For example, if the teen is asking for money to buy a video game and you deny him and save, it will make a lot of sense if the money saved was required to make emergency repair on heating system or any other item around the home. Real life examples help teens to conceptualize budgeting, emergency savings and how that money is vital in times of misfortunes.

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