Teenagers have a lot to learn before they head off on their own
Whether it's to college or to their first job — from doing laundry to basic cooking skills and so much more. But one thing that is sometimes overlooked is knowing how to handle money!
If your child is in a school system that offers personal finance as a class, that's great! Unfortunately, a lot of schools don't offer that, so it's up to the adults in their life to impart that knowledge.
There's a lot of information to impart on teenagers to make sure they get started off on the right financial foot. Fortunately for you, CommonWealth One is here to help! Before your kiddo leaves the nest, make sure they take a look at our financial education tools through Banzai and It's A Money Thing®. Instead of watching Instagram videos or YouTube Shorts, have them watch a few financial education videos through cofcu.org, and discuss them together!
If your kids are younger, you may already know about our Summer Reading Program for kids. Your kids can actually earn money for their CommonWealth One account by reading financially-oriented books. For more information, visit cofcu.org/summer-reading!
In addition, remember that CommonWealth One can set up your child with a checking and savings account, and provide you with age-appropriate monitoring tools to ensure they're being responsible. Setting up an account is as easy as stopping by a branch!
Here are a few things you can start with:
1. How to Budget and Track Spending
Teens should know how to plan for expenses and when and how their income can cover those expenses. They should think not just about their pizza budget and cell phone bill, but also about expenses like books, car repairs and other things that may not occur every month. They should learn to use a tool like a spreadsheet or an app like CommonWealth One's MoneyTools to help keep track of money coming in and going out, and have both a checking and a savings account.
2. The Benefits (and Dangers!) of Credit Cards
Credit cards aren’t "free money." Too often, teens don't keep track of their spending and get surprised when those monthly bills hit. On a related note, they should understand compound interest and how it works. Credit cards can be good financial tools, but only when they're used correctly!
Looking for a good way to start the conversation? Our free webinar, "Using Credit Wisely," is a great introduction to credit card basics. Hosted by certified financial counselor Emmanuel Obe, it’s designed to help students (and parents!) understand how to build credit the smart way. Click here to watch the webinar recording.
3. Understand Student Loans and Other Debts
Those student loans will come due eventually! Whether they've taken out student loans for college or a trade school, or they took out a loan for their first car and apartment, they need to understand both their rights and responsibilities. Particularly with student loans, they should understand deferred interest, the difference in loan types and how much they'll need to pay monthly when the first bill comes.
4. Credit Scores 101
A good credit score can affect future car loans, apartment rentals, job applications, and even insurance rates. Teens should know what is considered a "good" credit score and how to get and maintain one over the years. A bad credit score now can affect them years after they graduate.
5. How to Avoid Scams and Fraud
Students are often targeted by scams and identity theft because they can be easy targets. Teens should learn about using strong passwords, monitoring their accounts, how to spot a scam and how to avoid getting in trouble.
We're here for you — and for your kids! — for every life stage, and we're excited to be a financial growth partner. We also invite you to check out our recent webinar, Raising Money Smart Kids, packed with expert tips and practical strategies to help your child build healthy financial habits early. Whether you're starting with an allowance or talking about long-term financial goals, this on-demand session is a great companion to your efforts. If you have any questions or need resources, don't hesitate to reach out to us either online, on the phone or in person at a branch. We can't wait to hear about your children's success in the coming school year!
