Melissa Stearns, President and CEO of Community Financial Credit Union, shares a valuable lesson her 14-year-old daughter learned through earning babysitting and CPR certifications. “Through babysitting, she’s learned about choices, sacrifice, and how to balance earning money against time with friends and relaxation,” Stearns observes. Erin Seitz, Director of Education at Greenlight, also shares a personal anecdote about her oldest son’s first job as a soccer referee at age 13.
“He gained a stronger perspective about the value of money. Price tags now correlated to hours spent working, and he weighed his decisions to reflect that,” Seitz explains. Samantha Martinez, CEO and Managing Partner at Expressive Wealth, emphasizes the independence gained from summer jobs.
She notes that activities like going through the interview process and opening a bank account help teens build confidence. “It’s important to allow teens to learn on their own. As parents, you can provide support, but let them take the lead,” Martinez advises.
Research suggests that children can start forming money habits early. A survey of 2,000 parents of children aged 5-17 found that 82% believe financial responsibility begins at home. Additionally, 57% of parents wish they had more financial conversations with their children, with 60% indicating they would prioritize financial literacy more if given another chance.
James Cowie, a father of five, began discussing money and earning with his children several years ago.
Teens benefit from financial lessons
This led to entrepreneurial endeavors like a small business started by his second child.
“I would encourage my teens to get summer jobs but also balance it with entrepreneurial thinking and awareness of passive income opportunities,” he suggests. Seitz recommends incorporating money discussions into daily life. Use real-life scenarios, like setting a budget for back-to-school shopping or planning a family dinner, to help teens make informed financial decisions,” she advises.
Stearns has implemented a strategy of dividing her daughter’s earnings into “save”, “spend”, and “give” categories. She also highlights the “pay yourself first” approach, encouraging saving as a priority. An example includes the 52-Week Savings Challenge, where savers add one more dollar each week throughout the year, accumulating $1,378 by year-end.
Cowie believes in gamifying financial education. “I created a lemonade stand simulator to teach concepts like gross margin and pricing strategy. My eldest played it for hours, sparking more business model conversations than any sit-down chat ever has,” he shares.
He also includes his children in budgeting decisions, such as planning birthday parties within a set budget. Martinez suggests letting teens plan a vacation to understand the intricacies of time management and budgeting. “Through the process, they’ll learn the importance of planning and managing finances,” she explains.
These insights underscore the necessity of integrating financial literacy into everyday life, aiming to equip teens with the skills they need for financial independence.
Image Credits: Photo by Enrique Ortega Miranda on Unsplash
