Early Teens (13 – 14ish)

This is a time when teenagers can start earning some money outside of the home. Whether that be through a local paper delivery, sport umpiring or maybe working for the family business. There is also the potential for completing additional duties within the household that might not fall under the normal ‘chores’ umbrella.

Nobody expects an early teen to take on adult work responsibilities, but they do need to start somewhere. By the time they begin work in earnest you want them to understand what it is to have a boss and some of the responsibilities that go along with an income.

Rees advises, “When your young teen does earn money, help them to break their pay up into money they want to save and spend. You can discuss what they are thinking of buying with their new wages and whether that’s a worthwhile investment of their money. Don’t tell them…coach them. Ask questions like, “How long will it take to earn the money to buy the $100 shirt/ game you love?”

Mid Teens (15 to 18ish)

This is when your child will probably have their first job. The goal for all parents can be teaching them how to use a bank account, how to deposit money, how to get money out of the bank, and the importance of saving money. It’s helpful to do this online and in-person at the bank.

Rees explains, “It’s very easy when you get your first job to just spend all your money because spending money makes us feel good and it’s fun. This is a time where you can influence the spending habits of your child and teach them about saving for the future. You want them to enjoy their money but also learn to have savings in reserve.”

Too many people think being tight with money is being good with money. It’s not. We want our kids to be generous and charitable and also enjoy the benefits of their money. It costs money to live and money buys us opportunities. Being good with money means considering all of these factors and making well-considered decisions. Asking your child to pay their own phone bill is a way of making them understand that money gives us the things we value. It’s good to spend money on those things.

At 16 and 17, young people will be thinking about their first car. Rees says, “It’s understandable that you might want your child driving a car with a high safety rating. This may make you inclined to just buy them that car, but this is one of the great opportunities you have to teach your child about long-term saving goals. A good way of satisfying both needs is to come to an arrangement where for every $1 they save you will contribute an additional $1 to their car fund.”

Finally…

As our kids imagine their futures; the travel, living with friends, and having a good time, ensure they associate those opportunities with money that they will make. It is healthy for them to view making money as creating life possibilities. After all, that is the true value of money.

Remember, schools do teach general financial literacy concepts in specially crafted courses, like Santa Maria College’s Future10. There are also Australian Curriculum courses like Business Studies, which provides more detailed understandings. However, financial literacy requires ongoing, directed experiences. It also requires the emotional processes involved in real earning, spending, saving, and giving. That sort of teaching falls to parents.