Teach teenagers about money

The teenage years can be difficult, and money matters can seem insignificant. But good money management is important for them to learnt financial independence as they get older.

Pocket money

How much pocket money your parent's give isn’t important. Giving even the smallest amount of money regularly is a great way to help parents teaching teens about money.

For many people, pocket money is their first taste of financial responsibility. Giving a teenager a regular, set amount of money and the responsibility of paying for something they want gives them the opportunity to practice good money management.

How to save money as a teenager

A job will increase the amount of cash available to teenagers. This is a great opportunity to talk about the importance of saving.

Saving can be as simple as deciding to put aside a certain amount each month for a rainy day. Or, if they’ve a set savings goal, helping them make sure they reach it.

For example, if they want to buy a car, you could show them how to set up a standing order to their savings account each payday. This will make saving automatic and easier for them to stick to their.

Help them manage their first wage

Getting a job can be a teenager’s first step towards true financial independence and can play an important part in preparing them for the future.

Whatever the savings amount is, it’s a good idea to review it monthly or quarterly to make sure it’s working.

How much should they save from their wages?

There’s no right or wrong amount they should be saving from their wages. It will be different for every teenager and their individual circumstances.

Also, they may have received a pay rise or started to work more hours and need to change their savings plan.