Teaching your teens about financial literacy prepares them for a secure future.

Here are some effective ways to build money management skills in teenagers:

1. Budgeting Basics
- Introduce your teens to budgeting by helping them create a simple budget for
their allowance or part-time job income.
- Use budgeting apps designed for teens to make the process engaging and easy to
track.

2. Saving and Investing

- Encourage saving by setting up a savings account or using a savings jar.
Explain the benefits of saving for short-term and long-term goals.
- Introduce basic investment concepts, such as stocks and bonds, to help them
understand the importance of growing their money.

3. Responsible Spending
- Teach responsible spending by discussing the difference between needs and
wants. Help them prioritize essential expenses over discretionary spending.
- Encourage them to research and compare prices before making purchases to find
the best deals.

4. Understanding Credit
- Explain how credit works, including the importance of maintaining a good
credit score. Discuss the potential risks of credit card debt and how to avoid it.
- Consider setting up a secured credit card with a low limit to teach them how
to use credit responsibly.