Teaching Teens About Money Management

Teaching Teens About Money Management

According to the “2015 Teens and Personal Finance Survey,” conducted by Junior Achievement, 84 percent of teens look to their parents for information on money management. However, 32 percent of kids feel that their parents don’t talk to them enough about how to manage money.

April is Youth Savings Month - a perfect time to have the money talk. Start easy with these topics:

  1. Budget. Help your teen calculate their income (from a job or allowance) and estimate normal expenses (movies, gas, clothes, activities, etc).
  2. Taxes. If your teen has a job, look at their paycheck together and explain the difference between their hourly rate and their take-hope pay.
  3. Savings. Encourage your teen to save a portion of all gifts and paychecks. Explain long and short term savings and help plan out some larger ticket items to start saving for (college, a trip, a car, etc.). Discuss opening a second account to keep this long-term money separate from a normal spending account.
  4. Post-secondary education. If this is something your teen is interested in, be upfront about your financial obligation. Nearly half of kids think their parents will pay for college, but only 16 percent of parents surveyed said that they plan to pay college costs.   

Happy Youth Savings Month!

OMNICOMMANDER