4 tips to teach your teenagers financial responsibility

Text size: aA aA aA
First job? First car? Use the suggestions below to start talking to your teenager about their finances.

1. Show your teen how to create a monthly budget

More tips to teach your kids financial responsibility:
You can work with your kids on making a plan for spending an allowance or earnings from a part-time job. Once they're 13 or 14, they may be thinking about buying a car or making another big purchase in the next few years. That takes a lot of effort and planning.
More tips to teach your kids financial responsibility:

2. Introduce investing

Investing smaller sums with limited consequences is a great way for kids to learn about managing risk. They don't even have to use real money; online fantasy investing games make it easy to develop and practice important skills, and competition with classmates or family members may increase their interest.

3. Plan for college

Now is a good time to talk about the growing cost of higher education. Let your children know how much of the expense you'll be able to cover and whether they'll need to contribute through savings or work. If you've established a college savings plan, discuss how it works. Explain the difference between tuition costs at a private college and a state school. Discuss options for either government or private loans, and have them do some research on possible opportunities for scholarships. Open conversation and solid research now can be crucial.

4. Create learning opportunities

If your daughter is shocked by how much comes out of her first paycheck, sit down with her and explain taxes and Social Security. If your son wants his own bank account, show him how to balance a checkbook or keep track of an account online.
Next steps
  • Learn more about your finances with simple how-to videos at Better Money Habits
  • Visit the College Planning Center to determine your college savings goals and explore strategies to help you get there
  • Get additional helpful tips on saving and money management for teens with Money 101 from Bank of America