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Teaching teenagers about money before they leave home

By The Kinance team at digitalarc · Updated · 5 min read

Teenagers learn money by making real decisions with a parent nearby. Hand over one area of spending at a time, help them set a goal and research it, and give feedback rather than rescue. The aim, in the CFPB’s words, is independent decision-making, with adult guidance along the way.

Hand over real decisions

Teenagers generally start earning money and making decisions on their own, and the CFPB notes that adult supervision, guidance and feedback help them do it well. Start with one area they manage fully, such as clothes, phone top-ups or outings, with a set monthly amount.

Goal, research, follow-through

The CFPB’s milestone for this age is a teen who sets a goal, looks up the facts they are missing, and follows through to reach it. A bigger purchase, like a laptop or a trip, is a good first project: work out the price, the weekly saving needed, and the date.

Let small mistakes happen

Running short before the month ends is a cheap lesson at 15 and an expensive one at 25. Talk it through afterwards: what happened, and what they would do differently.

Show your own working

Kids watch how you shop for a bargain, splurge on a treat or plan for an occasion. Share some of your reasoning, and your strengths: if you are good at planning or spotting a deal, teach that.

Where Kinance fits

Teens get their own Kinance app with wallets and goal jars. They log their own spending and saving; you can see their entries and adjust limits, so feedback is based on what actually happened.

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