Managing money is one of the most essential life skills. Yet, currently, 1 in 3 high school students has no access to a personal finance course — even as elective.
It’s no wonder, then, that many teenagers learn about money from those close to them. A Creditcards.com survey from 2021 found that 53 percent of Gen Z get financial advice from friends and family.
If you’re wondering how to help your teenager learn personal finance and what you can teach them as a parent, we have a few suggestions. Here are four things your teenager should know about money.
How to raise financially smart teenagers
There are four basics your teenager needs to develop good money habits: budgeting, saving, using a credit card and managing credit.
Let’s take a closer look at each skill.
Budgeting
Creating and maintaining a budget is the first skill your teenager should learn to be successful in money management.
You can involve your teen in your family budget so that they can see for themselves what it takes to pay the bills, save and still have some money for additional spending.
Further, if your teenager has any income—be it from an allowance or their first job—help them create a budget of their own.