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Teaching teens financial literacy.

Teenagers are costly creatures. On top of their schooling fees, they’re consistently signing up to another expensive extracurricular activity, impressively eating enough for four, requiring new clothes every other day…. It’s always yet another expense that will see you open your wallet again, and again, and again.

As your teen grows, it’s important both for their development and for your own financial security that restrictions are implemented and money management skills are taught in an effort to ready your adult-to-be for the realities of the real world. After highschool, your kids won’t be reimbursed with a free meal if they forget theirs at home and the bus driver won’t waive their ride fee if they step aboard in uniform… the luxuries of teenagdom will evaporate, and it’s time to start preparing them now.


Although their behaviors probably counteract yours at this stage in your lives, eventually it’s likely your teenager will morph into a little replicate of yourself. Your teenager will learn by observing how you deal with money, so it’s important you model responsible attitudes and behaviors now.

Begin by verbalizing your messages. Set goals and make them heard throughout your household. Openly discuss your income and the funnels in which it’s distributed. It’s important your teen understands how your money is made and where it is going. Talk to your child about the decisions you make. As you shop, for example, check prices and discuss with your child why you’re not purchasing the first item you see.

Teenage Hack: As you’re driving to the shops, have your teenager develop a shopping list on their phone. This will not only keep them preoccupied from their habitual backseat driving, it’ll also ensure the shop is as quick and painless and possible! More seriously, a deliberate shopping list introduces direction, curbing desire to make impulse purchases.


We all want to do as much as we can for our kids, and of course, we don’t want to make them feel like the outcast they claim we do, however, sometimes their requests are just too extravagant for our modest wages.

Just because yo-yos and marbles are no longer, and your teenager’s best friend happens to own the newest iPhone, doesn’t mean you have to take out a second mortgage so your teen can ‘fit in’ at school. It’s important, in a growing age of entitlement, we don’t overindulge our teenagers and play into the “but all my friends have one” attitude.

Remember, your primary job is to prepare your teen for the real world, where they won’t always receive what they want. Ensure your teenager receives a healthy dose of ‘no’s’ to their requests in order to keep their life expectations in check. Also, model what it’s like to give. Generosity is a great cure to the me, me, me mentality.


Be it part-time work or general chores, your teenager should understand that privileges are the result of work. Upon venturing into the real world, it is rare to receive something without being asked for something in return. Next time your teenager asks for money, consider asking something of them in exchange. Unlike the typical chore system, this process doesn’t necessarily allow your teenager the option to forgo money to get out of work – as they’re seeking the funds first, it’s likely they’re willing to complete the task with a clear and attainable purpose in mind.


If your teenager isn’t very good at this, they’re ‘teenaging’ just right. Priorities don’t consist of saving for groceries, let alone next week’s rent when you’re an average teen. Engaging your adolescent to develop a saving strategy might be a difficult task, but it’s one worth conquering – the earlier they learn to budget, the better your nursing home will be.

Begin by having your teen create a ‘wishlist’ of things they’d like but are unable to afford right now. A lot of teens are able to save with an attainable end goal in mind.

Teenage Hack: To increase encouragement, consider matching your child’s saving efforts – if they are able to save a certain amount per week/month, match the amount by a particular percentage. The added should boost your teens desire to reach their set savings goal.


Bills are arguably the most daunting part of adulting. It’s time to begin doomsday prepping.

Right. Now.

Pull out your teen’s last couple of phone bills and begin thoroughly dissecting them; run through the different charges, browse the graphs, discuss billing periods – ensure that your teen has a thorough understanding of each bill aspect.


Remember though, your teenager is still a teenager and that means they think they know best. It’s likely that no matter how hard you try, at one stage or another, your teen isn’t going to listen, and they’ll spend all their money on ridiculous or disappointing purchases. Part of being a teenager is ignoring your parents advice, and part of being a parent is sitting back, allowing your teenager to make their own mistakes and just waiting for the process to repeat all over when they have teens of their own.

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