Money Education for Fifteen to Eighteen Year Olds

At this age, your teens need to become more sophisticated about handling their own money. This is the struggle for independence. Teach them life skills.

Show them how to use a checking account and debit (ATM) card - making sure they record all transactions and fees. Have them balance their own checkbook and pay their own bounced check fees.

This is also the time to encourage them to get a part-time job. This is probably the best way to bring home the message about earning money and also the benefits of higher education. Minimum wage only stretches so far. You may want them to open their own checking account if they have a job.

Discuss credit. Include topics of credit cards, costs and fees, credit reports, and credit habits. Explain that credit is not free money; it may get us things faster but we may end up paying more over a long period of time

It is a good idea to let them feel comfortable with using a debit card first. Your teen will need to know the vital difference between what you have (debit card) versus what you borrow (credit card). Consider allowing them to use your credit card it they pay the bill. When your statement comes, take time to explain the statement with close attention being paid to the due date and limit.

Our handling of credit obligations, good or bad, is reflected in a credit report that many businesses, lenders, and employers view. Misuse of credit may affect our future ability to have a place to live, work or borrow additional money.

 

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