A parent’s guide to helping teens build strong financial habits that last a lifetime
Getting your teen to save money can feel a bit like asking them to clean their room without being told twice—possible but not exactly easy.
Most teens aren’t naturally motivated to save. They live in the now, and if they’ve got money in their wallet, chances are they’re ready to spend it. All of this isn’t to say they can’t learn to save. It just means they need the right kind of motivation.
Teens are much more likely to save when they feel like it’s tied to something they care about: a car, a trip, a new phone, or even the independence of not having to ask you for money. With the right approach, you can turn saving from a boring chore into something empowering and rewarding.
Make Saving Tangible
Asking a teen to save “just because” rarely works. To them, the idea of building a savings account for someday can feel abstract, boring, or worse…pointless. Motivating your teen to get in the habit of saving starts with giving them a purpose they can actually get behind.
Start with a short-term goal, something they’re genuinely excited about, like a new phone, concert tickets, or a new pair of shoes. These types of goals feel attainable and will give your teen a clear reason to hold off on impulse purchases.
Once they’re in the groove of saving for short-term wants, introduce the idea of long-term financial goals. This could be saving for their first car, saving for college books, or having emergency money stashed away so they don’t need to ask you for cash every time something comes up. Long-term goals feel less exciting than the fun short-term wants, but they lay the foundation for some financial freedom later down the road.
Encourage Them To Earn Their Own Money
When teens work for their own cash, whether through chores or a part-time gig, they begin to understand its true value. Suddenly, spending $40 on a clothing haul doesn’t seem quite as fun when it took hours of work to earn it.
If your teen hasn’t started earning yet, ease them in by exploring opportunities that match their interests and comfort level. Maybe they’re great with kids and want to babysit for neighbors. Maybe they’re artistic and could sell digital art or handmade crafts online. Or maybe they’re ready for a weekend job at a local shop or café.
With their own income coming in, you can help guide them on how to spend their money wisely: saving a portion of their paycheck for those short-term and long-term goals while having a bit for their everyday needs.
Talk Openly About Real-Life Costs
For teens, the idea of saving for “the future” feels vague and unmotivating, especially when their priority is what’s happening this weekend. Connecting real-world expenses and the freedom that comes with it can help make saving feel more relevant.
Have open, honest conversations with your kids about the actual cost of everyday things. Break down how much gas costs, what a phone bill looks like, or what their dream car’s monthly payment might be. Don’t overwhelm them with all the details, but do give them a clear picture to help bridge the gap between fantasy and reality.
You can frame these lessons around freedom and choices, not restrictions. You might say:
- Want to take a trip with your friends next summer? Saving now means you can go without asking for help.
- Want your own car? Saving for a bigger down payment will give you more flexibility with a lower monthly payment.
- Want to live on your own sooner? Learning to manage money today sets you up to do that confidently.
Teens are much more likely to take saving seriously when they see it as the key to unlocking freedom.
Make It a Challenge
Teens love a good challenge. Whether it’s beating a level in a video game, winning a match at their sport, or keeping a Snapchat streak alive for 300+ days, they’re wired for motivation through achievement. So, why not apply that same mindset to saving money?
Turning saving into a competition makes it feel more fun rather than forced. Try out a monthly savings challenge. You may challenge your teen to save $50 each month of summer, and if they hit their goal, they get a bonus like a small treat or an extra privilege like picking the next restaurant for a night out.
Have more than one kid at home? Introduce a friendly family savings competition. Who can save the highest percentage of their income in 30 days? Who can go the longest without impulse purchases? Add a small reward, a matching incentive, or bragging rights to the mix, and you’ve just made saving money into something they want to do.
Open a Savings Account
Once your teen starts building up some money, they’ll need a safe place to keep it. A savings account gives them the resources to store money securely, track deposits and withdrawals, and get familiar with digital banking tools. They can keep their savings separate from their everyday spending so they aren’t tempted to spend it.
If your teen has earned income from a job, you can take things a step further with a custodial Roth IRA. You and your teen can contribute post-tax income into this investment account where it grows tax-free for retirement. That may not seem thrilling to a teenager now, but making even just small contributions now gives their money ample time to grow.
Lead By Example
As much as we’d like to think our teens aren’t paying attention to us, they absolutely are. When your teen sees you making smart financial decisions, they’re more likely to mirror that behavior—even if they won’t admit it out loud.
Be open with your kids about your own experiences with money. Share stories about what you wish you had known about money at their age, how you save for emergencies or vacations, or even how you learned from a financial mistake. This kind of transparency makes money feel less intimidating and more like a normal part of adult life.
It’s also important to create space for ongoing money conversations. Instead of sitting them down for a one-time “money talk,” look for everyday moments to weave it in:
- Encourage them to listen in when you’re comparing prices at the grocery store.
- Ask them to help calculate a tip when you go out to eat.
- Talk through how you decided between two purchases or why you waited to buy something on sale.
These real-life, low-pressure conversations help build your teen’s financial decision-making skills organically.
Saving money might not come naturally to teens, but motivation grows when they feel empowered, supported, and in control. It probably won’t be your teen’s favorite thing, but what matters is helping them see the point in saving.
Whether they’re saving for a car, college, or just the feeling of independence, your support and guidance can make all the difference. And once they start hitting their own money goals—even the small ones—they’ll start to feel that pride and momentum build.
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