Raising Financially Savvy Kids: Ages 12-18

Checks and Balances

The best way for teens to learn the joy of a dollar earned is to let them actually earn their own dollars. According to Keatley, a part-time job is a must for teenagers.

“Earning their own money and making their own financial decisions is a key experience,” she says. “It helps them to learn the connection between working and having money in the bank.” Kids who don’t work during the school year can hold down jobs during the summer.

Along with a teen’s earnings, allowance from parents for clothing or incidentals can be deposited into a checking account, so teens can learn to balance statements themselves. And no matter how much teens whine or pout, avoid doling out more money or repeatedly rescuing teens who come up short at the end of the month. Instead, create a spending plan that shows income, expenses and goals. It’s all about making sound choices, says Keatley. “Teens need to understand that they may not be able to have a latte every day and the designer jeans, too.” 

> Financially Savvy Kids: Ages 0-5
> Financially Savvy Kids: Ages 6-11