Building Good Money Habits with Your Teenager

As backpacks fill up and schedules get busier, the start of a new school year is the perfect time to have important conversations with your teenager about money. Between school activities, sports, fast-food runs with friends, and online shopping, teens are making more spending decisions than ever. Helping them build good financial habits now can set them up for success long after graduation. 

Start with Wants vs. Needs 

One of the most valuable money lessons parents can teach is the difference between a want and a need. 

Needs are essentials such as food, clothing, school supplies, and transportation. Wants are extras, such as the newest pair of shoes, gaming accessories, or daily trips to the coffee shop. 

Encourage your teen to pause before making a purchase and ask themselves: 

• Do I need this, or do I simply want it? 

• Is there a less expensive option available? 

• Will I still want this a week from now? 

Learning to evaluate purchases carefully helps teens make more thoughtful spending decisions and avoid impulse buying. 

Talk About Responsible Spending 

Many teenagers earn money through part-time jobs, babysitting, lawn care, or allowances. While it’s exciting to have money to spend, it’s equally important to learn how to manage it. 

Consider encouraging your teen to divide their money into three categories: 

• Spend for everyday purchases and entertainment 

• Save for larger goals such as a car, college expenses, or future travel 

• Give to causes and organizations they care about 

These simple habits can help teens understand budgeting and develop a healthy relationship with money. 

Make Saving for Goals Exciting 

Saving becomes easier when there’s a clear goal in mind. Whether it’s a new laptop, concert tickets, or a first vehicle, setting savings goals teaches patience and financial discipline. 

Help your teen calculate: 

• How much they need to save 

• How long it will take to reach their goal 

• How much they can set aside from each paycheck or allowance 

Watching their savings grow can be a powerful motivator and help build confidence in their financial decision-making. 

Give Them a Safe Place to Start 

A bank account can be a great tool for helping teens learn real-world money management skills. It allows them to track deposits, monitor spending, and begin building smart financial habits with guidance from a parent or guardian. 

At Deerwood Bank, our Next Youth Checking Account is designed to help young people take the next step in their financial journey. As an added bonus, eligible customers who open a Next Youth Checking Account between September 1 and October 31 can receive a $25 bonus* to help kickstart their new account. 

The combination of hands-on experience and financial education helps teens build confidence while learning how to manage money responsibly. 

Small Conversations, Big Impact 

Financial literacy doesn’t have to be complicated. A few simple conversations throughout the school year can help your teenager develop skills that will benefit them for years to come. The best money habits often start at home. 

This school year, take the opportunity to talk with your teen about spending wisely, saving with purpose, and making smart money moves that support their future. 

*Visit https://deerwoodbank.com/next/ for complete bonus details and eligibility requirements.