How to help your teens build good money habits

by | Aug 1, 2023 | Finance and Business

Teaching kids about money is not always easy. Here are some research-backed approaches you can try.

Budgeting
Many kids learn through experience and by example. Why not get them involved in budgeting for school supplies this year? Talk about how advertising can influence spending decisions and how it’s important to stick to a budget. Make a list in advance and only buy what’s on it.

If your teen has a part-time job or an allowance, have them try a trustworthy budgeting tool, such as the free, unbiased one from the Financial Consumer Agency of Canada. They can use it to budget for entertainment, clothes, social activities and perhaps save for longer-term financial goals like post-secondary education or buying a car.

Banking
There are low- and no-fee bank accounts available for teens. They will receive electronic alerts when their account balance falls below $100. This is a new legal requirement for banks and you don’t have to sign up for the alerts. You can also change the limit to an amount that works best for them.

Make it fun
Gamified apps are a fun and engaging way to help teens build financial knowledge, skills and confidence. There are two self-paced financial literacy courses on chatterhigh.com, a site that helps kids prepare for life after high school. Students learn basic concepts and strategies for money management and budgeting while earning points and winning prizes.

The first course is for students from grades 6 to 12 and covers topics such as budgeting, saving, debit and credit cards. The second course is geared for grades 9 to 12 and introduces resources and tools teens can use well beyond high school. It covers topics such as taxes and financial resources for post-secondary education.

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