How to Teach Your Teen about Finances

Entering the adult world can be an exciting prospect. There are new things to learn, places to see, and what feels like all the time in the world. However, money management plays a huge role in helping meet these ambitions. So, before your teens go out on their own, ensure they're prepared to manage their finances. Here are some ways to teach teens about money, include financial topics into your teen’s education, and arm them with the tools they need to control their money successfully.

Set Some Goals

Ask your teen about their financial goals. Are they saving for a car? Do they want to build an emergency fund for college? Whatever their needs are, now is a great time to discuss achievable long-term goals in detail and develop a plan.

Take Time to Discuss Finances

A few minutes in the day can be all it takes to start teaching teens about money. You can schedule 30-minute sessions to discuss building credit, creating a budget, filing taxes, etc. You could also include them in important financial conversations as a family.

Look for Job Opportunities

Real-world experience is one of the best ways to learn money management. Building a work ethic and financial responsibility early on can help your teen understand the value of money. It can also help them learn how to grow their career, look for new job opportunities, and ultimately grow their income.

Show Model Behavior

Children often imitate their parents’ behavior. This is an opportunity to instill financial literacy by becoming a model for healthy financial habits. You can do this while shopping and show how to find a good bargain. Or, you can show them how you budget your expenses.

Find Tools and Resources

Today, teens are more technologically connected than ever before. Many online tools and resources are available to help your teens learn about finances from their phones or computers.

Cyprus Credit Union’s Learn & Earn accounts give parents and teens the tools to build financial literacy and get practical experience, all online. Teens can access a custom financial education package and unlock real cash rewards of up to $200 for opening a new account, completing learning modules, and setting up direct deposit after getting their first job!

You can learn more about Cyprus’s Learn & Earn accounts here.

Being financially literate opens up many opportunities. And teaching teens about money shouldn’t be taboo. By taking steps now rather than later to establish good financial habits, you’re preparing your teen for the future.