Teenagers already have some experience with pocket money, shopping, saving, losing money, borrowing, sharing, and many other aspects of money circulation. Nevertheless, they still need your support to develop healthy financial habits. How can you help them do that?
Tips for Parents:
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Discuss the family budget together: Talk about where the money comes from, how you allocate it for different needs, and how you can reduce some expenses or find new sources of income.
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Teach your child to distinguish between needs and wants: Help them understand that needs come first, and only then, if possible, come the wants. This is key for future success in life.
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Start giving pocket money for longer periods – once a week or once a month. This teaches them how to plan their expenses.
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Teach them to allocate their money for different purposes: for essentials (snacks, school supplies), for fun, for saving, for charity, etc.
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Encourage them to save: Help them visualize how small savings can help achieve bigger goals.
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Open a bank account for your child: Get them a child debit card linked to the account with a limited daily spending cap, so they don’t overspend. Use all available banking features to monitor account activity together.
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Some parents allow their kids to shop online using a parent’s account. However, there is a risk that children might accumulate serious debts without permission. A better option is for the child to have their own card with a spending limit. Banks offer various options where the parent receives information about every transaction on the child’s account.
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Talk to your child about common online scams, such as fake shopping or banking websites that look exactly like the real ones (phishing).