The Update

How to Teach Your Teen About Finance

Teaching teens about finance is an essential step in preparing them for a successful and independent future. With the right knowledge and skills, young people can learn to manage their money wisely, avoid common financial pitfalls, and build a solid foundation for their financial well-being.

Basics of Budgeting

One of the first steps in teaching teens about finance is to start with the basics of budgeting. Encourage them to track their income and expenses, understanding where their money goes each month. This can be done through simple budgeting apps or even a basic spreadsheet. Emphasizing the importance of living within their means and setting aside savings can help instill a sense of financial discipline early on.

How to Save

Another crucial lesson is the power of saving and the concept of compound interest. Show teens how saving even a small amount regularly can grow significantly over time thanks to interest. Setting up a savings account and demonstrating how their money can work for them can be a powerful motivator. Encouraging goals, such as saving for a car or college, can make the concept of saving more tangible and rewarding.

Credit Vs Debit

It's also important to educate teens about credit and debt. Explain how credit cards work, the importance of paying off balances in full to avoid interest, and the long-term implications of carrying debt. Discussing credit scores and how they affect their financial future, including their ability to rent an apartment or get a loan, is vital. Providing guidance on how to build and maintain good credit can set them on the right path.

Open the Communication

Finally, encourage open conversations about money. Create a comfortable environment where teens feel free to ask questions and discuss financial topics without judgment. Sharing your own experiences, both successes and mistakes, can provide valuable real-world context to their learning.

By equipping teens with financial literacy, we empower them to make informed decisions, avoid costly mistakes, and build a secure and prosperous future.

RGCU Accounts Designed for Teens

Success doesn’t have to wait. Start making the most of your money now. The CU Succeed account is specifically designed for 13–17 year olds, and lets you save and spend securely.