Money Management Tips for Your Older Kids
Teenagers are starting to work, college students are thinking about the future and many older kids are thinking, How do I get serious about money?
Here are some tips to help guide your older children on their financial journeys.
This article is divided into two sections: one focused on high school–aged children, and another for young adults in college and beyond.
High School: Preparing for Adulthood
As teenagers approach adulthood, it's crucial to equip them with the knowledge and skills necessary to navigate complex financial decisions on their own. Focus on practical applications of money management, such as getting a paycheck, savings and budgeting for long-term goals.
1. Find a Job
Encourage your teen to pursue part-time jobs or summer employment to earn their own money. This experience instills a strong work ethic and provides valuable financial independence.
2. Set Financial Goals
Guide your teen in setting realistic short-term and long-term goals, such as saving for a car, college tuition or building an emergency fund. Help them create a plan to achieve these goals through budgeting and saving.
3. Help Them Understand Credit
Help your teen understand the responsible use of credit cards and loans, from building good credit to avoiding common debt traps. Emphasize the concept of interest rates and how they affect borrowing costs.
4. Protect Them Against Fraud
Educate your teen about common scams and identity theft risks, emphasizing the importance of safeguarding personal and financial information online and offline.
Recommended Tools and Games
• Financial Football:
This interactive game challenges players to answer financial questions to earn yardage and score touchdowns. Download for free on iOS devices.
• Plan'it Prom:
Help your teen plan and budget for prom expenses with this handy app that tracks spending and ensures they stay within their budget for the big event. Download for free on iOS devices
• Open an eXtras Student Checking account:
When teens begin earning money, it's often their first real experience managing how they spend it. Our eXtras Student Checking account lays a solid foundation for smart money management with no monthly fees or minimum balance requirements. Plus, they can access their paycheck up to two days early* with direct deposit!
College and Beyond: Continuing Financial Education
Even as young adults, your kids still need ongoing financial education to build a secure future. It's essential to provide resources and tools that empower them to make informed decisions and manage their money effectively.
5. Buy a Car
Buying your first car is a big financial step. Our First-Time Auto Buyer Loan helps those with little to no credit buy their first vehicle. Use our online calculator to determine what kind of car you can afford based loan term and the amount needed for a down payment.
6. Build an Emergency Savings
Use our calculator to see how much you should set aside each month to build an emergency fund that covers essential expenses in case of unexpected events like job loss or medical emergencies.
7. Start Budgeting
Track your daily expenses and income to create a realistic budget that aligns with your financial goals. Use budgeting apps or spreadsheets to monitor your spending and identify areas for saving or cutting back.
8. Save for Goals
Whether it's a vacation, home purchase or retirement, use savings calculators to determine how much you need to save each month to reach your financial goals within a specified timeframe.
Recommended Tools and Activities
• Research family members' jobs:
Encourage your child to research and compare the careers of family members, exploring the education and training required for various professions. This helps them understand the connection between education, career choices and financial success.
• Online calculators:
Explore Apple FCU's suite of online calculators to analyze various financial scenarios, from buying a car to saving for retirement. These tools provide valuable insights into your financial situation and help you make informed decisions.
• Apply for an eXtras Student Credit Card:
A credit card is a powerful financial tool that teaches young adults how to spend only as much as they have. When used properly, it can also help build a healthy credit profile, which can help them later on when securing loans and mortgages.
Teaching your kids about money management is an ongoing process that evolves as they grow and mature. By incorporating fun and educational activities into their learning journey, you can equip them with the knowledge and skills they need to make responsible financial decisions and achieve long-term success.
If you're looking for tips on having age-appropriate money talks with your grade schooler or other young children, check out our article 8 Tips for Teaching Your Preschool Through Middle School Kids About Money.
