Teaching Teenagers 13–17 About Money & Investing
Teaching Teenagers (13–17) About Money & Investing: A Complete Parent’s Guide
Why the Teenage Years Are Critical for Money Skills
At 13–17, teens are:
- Becoming independent in decision-making.
- Earning money from part-time work, side hustles, or allowances.
- Thinking about cars, higher education, travel, and future careers.
- Starting to form long-term habits—good or bad—around money.
This is the stage where
practical money management and
real investing experience can make a lifelong difference.
They’re old enough to handle real numbers, real risks, and real rewards.
Core Learning Goals for Ages 13–17
Your teaching plan will focus on helping your teen:
- Master budgeting – Manage income from work, gifts, or side hustles.
- Understand banking tools – Savings accounts, debit cards, and digital banking.
- Set financial goals – Short-, medium-, and long-term.
- Earn and grow income – Jobs, side hustles, and passive income ideas.
- Understand debt – Credit cards, loans, and the dangers of high interest.
- Learn real investing – Shares, ETFs, managed funds, and diversification.
- Build healthy habits – Avoid lifestyle inflation and make smart spending choices.
Step-by-Step Teaching Plan
Step 1: Budgeting & Tracking
Goal: Teach teens to manage their income, expenses, and savings like an adult.
How to Teach:
- Introduce the Zero-Based Budgeting Method – Every dollar has a job (spend, save, invest, give).
- Use budgeting apps like YNAB, PocketGuard, or MoneyBrilliant (AUS).
- Have them track every cent for one month, then review together.
Example Budget Split for Teens:
- 50% Essentials (phone bill, transport, school costs, etc.)
- 30% Fun/Personal
- 15% Savings
- 5% Giving
Banking Basics
Goal: Teach them how bank accounts work and how to use them wisely.
How to Teach:
- Open a youth savings account and a linked debit account.
- Show them how to read bank statements.
- Teach how to use online banking to check balances, transfer money, and set up auto-savings.
Activity:
Have them set up an
automatic transfer of a fixed percentage of their income into savings.
Setting Financial Goals
Goal: Get teens thinking ahead and planning for larger expenses.
How to Teach:
- Help them list short-term goals (new phone, gaming setup), medium-term goals (car, travel), and long-term goals (university fund, investing).
- Use the SMART Goals method: Specific, Measurable, Achievable, Relevant, Time-bound.
- Discuss trade-offs—choosing between multiple goals.
Activity:
Create a
goal tracker with savings milestones for each target.
Earning Money
Goal: Show that they control their earning potential.
Ways Teens Can Earn:
- Part-time jobs (retail, hospitality, tutoring).
- Freelance work (graphic design, writing, coding).
- Side hustles (selling online, lawn mowing, pet sitting).
- Digital income (YouTube, reselling, online courses).
Lesson:
More skills = more earning power.
Encourage them to learn marketable skills while in school.
Understanding Debt
Goal: Warn them about dangerous debt and teach responsible borrowing.
How to Teach:
- Explain the difference between good debt (education, home loan) and bad debt (credit card shopping sprees).
- Show how interest compounds against you on credit cards.
- Explain Buy Now Pay Later risks (Afterpay, Zip Pay).
Activity:
Use an
online debt calculator to show how a $500 purchase can cost $700+ if not paid off quickly.
Investing for the Future
Goal: Give them hands-on investing experience.
How to Teach:
- Explain Risk vs. Reward – Higher risk can mean higher returns, but also bigger losses.
- Introduce Key Investment Types:
- Shares (stocks)
- ETFs (Exchange Traded Funds)
- Managed Funds
- Term Deposits
- Teach diversification – Not putting all money into one investment.
- Show the power of compound interest over 10–20 years.
Activity:
Help them start a
micro-investing account (e.g., Raiz, Spaceship in Australia) with $5–$20 per week. Track progress monthly.
Tax & Superannuation
Goal: Help them understand basic adult responsibilities.
How to Teach:
- Explain income tax and the Australian Tax File Number (TFN).
- Show how superannuation works and why starting early matters.
- Teach that employer contributions are free money for their future.
Activity:
Check their first payslip together to see tax withheld and super contributions.
Smart Spending & Lifestyle Habits
Goal: Avoid “lifestyle inflation” and impulse purchases.
How to Teach:
- The 24-Hour Rule for big buys – wait a day before deciding.
- Compare cost-per-use rather than just price.
- Talk about marketing tactics and FOMO (fear of missing out).
Activity:
Before buying something expensive, have them research at least
two cheaper alternatives and discuss if the purchase is still worth it.
Giving & Social Responsibility
Goal: Teach empathy and generosity.
How to Teach:
- Set aside 5% of income for giving.
- Let them choose a charity or cause they care about.
- Discuss non-monetary ways to give (volunteering, skills sharing).
A 4-Week Teen Money & Investing Plan
Week 1: Budgeting, Banking & Goals
- Open a youth bank account.
- Create a first budget using an app or spreadsheet.
- Set 3 SMART financial goals.
Week 2: Earning & Debt Awareness
- Explore job and side hustle opportunities.
- Discuss credit cards, BNPL services, and interest traps.
- Use a debt calculator activity.
Week 3: Investing Basics
- Explain different types of investments.
- Set up a mock or micro-investment account.
- Track investment changes over the week.
Week 4: Taxes, Super & Smart Spending
- Review a payslip and discuss tax & super.
- Practice cost-per-use comparisons.
- Implement the 24-hour spending rule.
Everyday Learning Opportunities
- Shopping Trips – Compare prices and brands.
- Bill Discussions – Show household bills and talk about savings.
- News Stories – Discuss market changes or economic events in teen-friendly terms.
- Meal Planning – Show how buying in bulk can save money.
Tools & Resources for Parents & Teens
- Apps: Raiz, Spaceship, MoneyBrilliant, ASIC’s MoneySmart
- Books: The Barefoot Investor (Scott Pape – teen edition), I Will Teach You to Be Rich (Ramit Sethi)
- Games: Monopoly, Cashflow 101, Stock Market Simulator
Common Mistakes to Avoid
- Not letting them make small mistakes – Better to lose $20 now than $2,000 later.
- Doing it all for them – They must actively manage their own money.
- Avoiding “boring” topics – Debt, tax, and super are crucial for adulthood.
- Overcomplicating investing – Keep it simple and real-world.
Tracking Progress
By 17, your teen should be able to:
✅ Manage a personal budget.
✅ Use banking tools independently.
✅ Set and work towards financial goals.
✅ Understand
debt risks and interest.
✅ Make informed spending decisions.
✅ Actively save and invest small amounts.
The Long-Term Payoff
If you follow this plan consistently:
- Your teen will enter adulthood with real-world financial skills.
- They’ll have savings, investments, and healthy money habits.
- They’ll be better equipped to avoid crippling debt.
- They’ll have a head start on wealth building before most of their peers.
