More than half (54%) of teens say they feel unprepared to finance their futures, according to the 2022 Junior Achievement Fintech Survey. Graduation is just around the corner, and Numerica Credit Union has simple steps parents can take to help teens feel more confident in their financial decisions.
Jon Maroni, Numerica Credit Union community development and impact relationship manager, teaches financial education to high school students across Spokane. He says the top three questions teens have when it comes to finances are:
- How do I make and manage money responsibly?
- How to afford my dreams?
- When should I open my first credit card?
“Kids and teens are absorbing their money lessons from you, even if you’re not talking about money actively,” Maroni said. “Open up and have real conversations. Be as comfortable as you can be with your personal financial situation with your family.”
Here is how to get started:
- Set up a checking account: With a checking account and debit card, you’re able to track spending and see where paychecks or allowances are going. Ask your financial institution about an account specifically for teens and their parents. For example, Numerica offers teens checking accounts that allow parents to get low-balance alerts, set spending limits, and help their teen establish good money habits.
- Reach savings goals: Whether teens are saving for a car, college or a first apartment – creating a budget and planning of how much money to set aside every paycheck teaches smart money management into adulthood. Saving for a $10,000 car can seem like a big goal. Help your teen break it down into monthly savings goals that are “SMART” financial goals. These are Specific, Measurable, Attainable, Relevant and Time-bound.
- Understand credit cards: When used responsibly, credit cards are a great way to build credit and earn rewards. Plus, they are convenient to use. Take the time to educate your teen on what interest rates are and the importance of making payments on time. When first getting a credit card for your teen, monitor their account regularly, have them walk you through their payments and help them set a spending budget.
“At Numerica, we want to encourage everyone to have real financial conversations — and that includes parents with their teenagers,” Maroni said. “Being vulnerable about your finances with your teenager can help them understand what a significant thing money is and why sometimes you have to make hard decisions as a parent. Invite them into that part of your world, and set them up for future financial success.”
For more information, head to: https://www.numericacu.com/news/teen-spending/
*Survey from Junior Achievement and Citizens
