According to a Greenlight® study in 2021, 74% of teens don’t feel confident about their financial education. What’s more, only 13 states require high school students to take a personal-finance class to graduate. So, the chances of your teen learning basic money lessons, without your help, are meager.

Since financial literacy is key to building a solid foundation, here are six easy ways you can help your teen become more financially responsible.

Introduce an Envelope Saving System

The Envelope Saving System is an approachable method when it comes to saving. It identifies different spending categories like necessities, experiences and clothing. Rather than your teen spending their entire paycheck on the newest iPhone or Homecoming ticket, each budgeted type allows them to save for these items over time. While physical envelopes and cash are traditional options, they’re also not the most secure. So, consider opening a couple of checking or savings accounts to act as virtual envelopes. That way, their money is federally insured and protected from impulse spending.

Practice Money Management through Online Banking

Online banking* can be a great teaching tool for money management as it allows teens the opportunity to track their spending whenever, wherever. Take it a step further and explore budgeting tools that allow your teens to set budgets, goals, monitor cash flow, and customize account names. These tools help teens better understand their spending patterns and save for significant milestones like their first car or prom night.

Open A Student Checking Account

Most financial institutions offer a student checking account with perks like free debit cards or zero minimum balance requirements. Managing a checking account helps your teen learn about overdraft fees, funds availability, debit card limits, and ATMs. Sitting down face-to-face with a banker allows them to ask questions about how to make a deposit, send payments and more.

Explore Investing Apps

As investing among the younger generation becomes increasingly popular, specific apps remove the fear of investing. Apps like Acorns® or Greenlight® focus on education. Acorns Early® can find exclusive investment opportunities with companies like Disney+® and ABC Mouse®. It teaches kids to invest in products they use every day.

Add Your Teen as An Authorized User

Adding teens to your credit card as authorized users can help teach them the process of using and repaying credit. With your guidance and presence, someone is always there to help manage balances and meet minimum payment dates.

Plan Monthly Budget Meetings

Setting up monthly budget meetings with your teen allows them to develop good money-spending habits, and also provide the opportunity to discuss the difference between wants and needs, and how to use various free financial tools listed above. Check out our budgeting roadmap to get the most out of your budget.

*Online Banking is free with eStatements. $3 per month with paper statements. Online Banking is required to use mobile and online products.

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