Realizing that your teen is nearing adulthood is bittersweet. You know you did your best to instill positive values and teach them essential life skills, but you still worry about their ability to thrive in an ever-changing and challenging world. You may not be able to predict the future or control their actions, but you can give your teen the foundation they need to succeed. Though there are various obstacles along the journey to adulthood, financial management is an excellent starting point.

Finances And Adulting

Prepare Teens for Finance

Although money isn’t everything, it impacts every aspect of your life. When your finances are out of order, it is difficult to afford the bare necessities, let alone luxuries that make life more enjoyable. It can also affect your health, relationships, and quality of life. As no parent wants to see their teen struggle, it’s imperative to teach them financial management practices. Below are some areas to prioritize.

Finances For Adulthood: Earning Money

The first subject is earning money. Your teenager will need to know how to generate income to cover their expenses. Most parents start this lesson when their kids are young by assigning age-appropriate chores and paying an allowance. However, your teen needs to learn how to earn money that doesn’t come from your budget.

Luckily, there are hundreds of ways for teens to earn money. Traditional jobs for teens, like cutting grass, walking dogs, tutoring, or babysitting, are still lucrative options. However, modern technology has also created opportunities for teens, like answering surveys, playing games, monetizing videos, influencing, and even online stores. Look into options that interest your teen and accommodate their current schedules.

Saving Money

Basics of Trusts

Earning money is only part of the equation in adulthood. You must also learn how to save. Setting money aside for large purchases and emergencies is essential. Once your teen starts earning income, teach them the importance of saving. Financial experts recommend setting aside at least 20% of your paycheck. So, every time your teen gets paid, instruct them to put the designated amount in an account.


Keeping your money in a secure bank account is an essential financial management practice. It makes tracking, saving, and spending your earnings easier in this digitally inclined society. While managing bank accounts has come a long way from reviewing ledgers and balancing checkbooks, your teen should learn how to manage their funds through modernized platforms.

Take your teen to a local bank and open a custodial checking and savings account. Help them to create a secure online profile and set up banking features like direct deposit or automatic saving transfers. Lastly, show your teen how to view their balance and use their debit card to complete in-person and online transactions.


Create a monthly budget plan

Budgeting is likely one of the most essential financial management practices to teach your teens. They must learn how to make the most of their income and avoid debt. A budget gives teens a clear picture of their income and expenses to make informed decisions for their future. Although your teen doesn’t have many financial obligations, you can still teach them the basics of budgeting.

Review their bank statements to analyze frequent purchases and expenses. Some everyday items teens spend money on might include subscriptions, clothes, tech, downloads, and entertainment. Draft a budget that includes their income and expenses. You should also add the 20% savings contribution. Show your teen how to create and review their budgets each pay cycle and make economically-wise purchasing decisions.

Establishing And Managing Credit

The final area of focus is establishing and managing credit. Educate your teen on how credit can impact their ability to get a credit card, loan, line of credit, apartment, car, insurance, and more. Express the importance of keeping their credit in good standing by being financially responsible.

Although there aren’t any credit cards for teens, you can teach them how to build credit without a credit card. You can add them as an authorized user to your credit card and give them an “allowance” or spending limit with a monthly payment to practice. Another suggestion is to apply for a secured credit card which will assist them with establishing and building their credit.

Adulting is an obstacle that many encountered and navigated through trial and error. Give your teen a better start by teaching them financial management practices like earning, saving, banking, budgeting, and credit. With your guidance, your teen will develop healthy habits that help make adulthood a more enjoyable experience.

Our blog has tons of great content to help you out. Check out some of our other articles on career ideas and business tips now to learn more!

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