Youth on the Rise: First big money moves for kids and teens

Talking to your kids and teens about money can feel like getting them to eat their vegetables. Both are important and necessary, but neither is typically fun or easy to tackle.

Oftentimes, kids and teens learn most through experience. As a result, tools like youth debit cards, savings accounts, and starter checking accounts can help people learn at a younger age how to effectively manage their money.

Training wheels for banking

Learning how to ride a bike requires training wheels. The same applies to banking.

“Youth accounts are like training wheels for money,” said Carrie Upchurch, Everwise Credit Union Northwest Indiana Area Manager. “They give kids and teens a safe space to practice while parents keep a close eye on what’s happening. Kids and teens find independence with a built-in safety net.”

These youth accounts, along with other banking tools, open a door for younger people to see what happens when money hits and leaves their accounts. It gives them a chance to set savings goals and experience real banking. Even small decisions like transferring birthday money into their savings or using a debit card for the first time become valuable practice.

Small lessons that stick

The risks are typically lower when kids and teens start their financial journey, which means small mistakes can turn into impactful life lessons. For example, if your child overspends online and overdrafts their account, they face a real consequence, but it’s a far cry from the end of the world.

“I tell parents all the time that I would rather see a teen overdraft on a coffee than on a car payment later on in life,” Upchurch said. “These experiences are chances to learn, and they often stick with them long after the lecture is over.”

Starting kids and teens on their financial journey early can help them better manage money as adults.

“By easing into the transition from youth accounts to adult money management, you’re helping your family practice and be better prepared for budgeting, saving, and spending wisely when the stakes are raised,” Upchurch said.

Starting early matters

The financial world today looks vastly different from past environments. With conveniences like two-day shipping, food delivery apps, and buy now, pay later purchase options, spending happens almost twice as fast. With growing pressure from peers, many kids and teens are bombarded with reasons to spend without truly understanding how money works.

“This is why giving kids and teens real experiences with money early on is so important,” explained Upchurch. “Once they see how money moves and how fast it can disappear, the lightbulb goes on helping them connect their choices with future goals.”

How to get started

Staying simple is the best way to start and can go a long way. Everwise offers three key tenants for jump starting the financial journey for youth and their parents.

1. Open a savings or checking account with a youth debit card to start off simple.

2. Review transactions together and talk honestly about what worked, what didn’t, and what the next goal could be.

3. Celebrate all the wins. Whether it’s saving for a concert ticket or earning money by completing chores, encourage them to keep going and build momentum.

As a parent, if you don’t feel like a financial expert yourself, don’t worry.

“Parents might think they need to have all of the answers, but kids and teens really just need someone willing to talk with them and let them practice,” said Upchurch.

Taking lessons to the bank 

In general, confidence, independence, and the tools to handle life as it evolves are often sought after achievements. Money skills are a major component to reaching these goals.

“Remember to start small and give your family a safe space to practice, and you will be surprised how quickly the lessons start to stick,” said Upchurch. “Even if you think your teen rolls their eyes when you start talking about money, know that they are listening more than they let on.”

Everwise Credit Union offers youth debit cards, youth savings and checking accounts, and other resources that make money lessons easier. Learn more at everwisecu.com/back-to-school.

The information provided is for educational purposes only. The views and opinions expressed are solely those of the author. This information should not be considered to constitute financial, tax, legal, or accounting advice or recommendations. Please consult with an attorney, financial or tax professional for guidance.