We teach kids to read, write, and do math—but what about managing money? Jeffrey Feinstein, Principal of KBK Wealth Management, informs that without early financial education, young adults often struggle with debt. “Schools don’t always cover the basics,” he says. Start now, and you can prepare your teen for a confident financial future.
Start With Earning, Not Just Spending
Money lessons stick when teens have their own income. Whether it’s an allowance, a part-time job, or a side hustle, earning money helps them understand the effort behind every dollar. This is also a great opportunity to discuss taxes—showing them their first paycheck and explaining deductions can prevent future shock.
Make Saving a Habit
Help your teen see savings as a necessity, not an afterthought. A simple method—50% for needs, 30% for wants, and 20% for savings—teaches balance. Encourage them to save for short-term goals, like a new gadget, and long-term ones, such as a car or college. Matching their savings as an incentive can reinforce good habits.
Teach Thoughtful Spending
Teens are constantly targeted by marketing, making impulse buying a real challenge. Help them think before they spend by comparing prices, setting a spending limit, and delaying big purchases. Using a budgeting app or tracking expenses manually can open their eyes to where their money really goes.
Introduce Investing Early
Investing isn’t just for adults. Teaching teens about compound interest, stocks, and long-term wealth-building can set them up for financial independence. A simple custodial brokerage account or even fractional shares can help them see how money grows over time.
Explain Credit Before They Get a Card
A credit card can be a useful tool or a dangerous trap. Teaching teens about credit scores, interest rates, and responsible borrowing will prepare them for smart financial decisions. Adding them as an authorized user on your card—while requiring them to pay their portion—can provide hands-on experience in a controlled way.
Normalize Money Conversations
The more comfortable teens are talking about money, the better they’ll manage it. Have open discussions about budgeting, investing, and financial goals. Share your own financial lessons—both successes and mistakes—to make the topic relatable.
Financial habits start early, and the lessons you teach now can help your teen avoid costly mistakes in adulthood. If you’d like to explore how to incorporate these strategies into your family’s overall financial plan, a licensed financial advisor can help create a tailored roadmap.
You Can’t Stop Social Media
Teenagers, young adults (and even parents) are constantly scrolling. One tactic that works is adding financial literacy to social accounts for teens. Instagram accounts such as @cnbc, @wsj (Wall Street Journal), and @investopedia provide financial news and education in an entertaining and concise format. In between celebrity and influencer posts, having your children gain financial knowledge, can use social media for their own betterment. To learn more, visit https://www.kbkwealth.com/ and explore their Knowledge Center.