Financial responsibility is essential for teens to learn prior to entering adulthood. It can set the foundation for a successful future and can help them learn how to manage their household when the time comes. One source claims that when teens know basic money skills such as budgeting and financial literacy, they are more likely to make smart choices in their finances later in life. Some sources say that starting as early as possible - elementary school or earlier - is the best way to go about teaching money management. Other sources believe that money management training should begin in 9th grade and continue through high school and into college.
There are different ways teens can learn and apply this sort of responsibility to "real world" situations. For example, in most states teens can start working between the ages of 14 and 16. Getting and keeping a job can be an important skill for them to learn, as being able to create an effective resume and make a good impression can be advantageous.
Finding the right bank to fit their needs can also be an important skill for teens. There are several things that teens should look for when choosing their bank. This includes the FDIC status, their different savings options, fees, interest rates, and access to funds. These skills can also transfer over into being a smart shopper. It may be valuable for teens to learn self-control in their purchases, how to research products, track their spending, and separate needs from wants.
There are added benefits for financial planning of which parents and caretakers can also take advantage. Every state in the country, with the exception of Wyoming, offers 529 plans to help ease the burden of college for both student and parent. These plans can cover all college expenses such as tuition, dorm expenses, and books, and generally have no age limits. There are also several tax breaks that can be used to help supplement the cost for parents. It may be a good idea for students to learn these things as well to ensure they are able to take over financing their education when the time comes.
Below are some resources for parents, teachers, caretakers and teens on learning to become financially independent through savings, work, and college:
How to Save for College
Employment Opportunities for Teens
Checking and Savings Account Information
Budgeting Tips and Tricks for Teens
Resources for Financial Tools