As parents, we are responsible for teaching our children how to become independent responsible adults. An important aspect of this is know how to teach teenagers about money. They need to understand how it’s earned, what things cost, and why you should save.
Money Management For Teens

The best way to teach kids about money is for them to learn by example. Talk to them about what things cost and why you can or cannot buy certain things.
Teach Them What Things Cost

Send them to the store to buy things on a list. You can ask them beforehand to think what everything would cost together and then they can see if they guessed correctly or were way off.

Give them insight into the family budget. Show them what your mortgage is, what you pay for insurance, school fees, and what you need for groceries (and savings if possible).
Teach Them How To Save

A great way to teach them how to budget is once they’re earning their own money, to give them several ‘buckets’ to split their earnings into.

They can put some into expenses, some into personal spending, some into savings.
Give Them An Allowance

We’ve always given our children a small but consistent allowance.

They can choose to spend it or save it. In the beginning, they would spend it on silly toys and tuckshop.

Our eldest son wanted to get a tablet, so we said that if he saved up half of the money for it, then we would pay the other half.

It took him 2 years, but he eventually got his tablet.

There were several lessons learned from this:

Our son felt a great sense of achievement and pride in buying his own tablet.
He learned delayed gratification i.e. he couldn’t get it immediately, but really enjoyed the feeling of finally getting it.
Our youngest son noticed that you could buy one really nice thing, and use it a lot, versus buying sweets and toys that you don’t really play with again. He too started saving his allowance to buy something bigger and better later on.

Open A Bank Account For Them

Our son has his own bank account, which is a savings account, but he can withdraw from it when he needs some money.

It’s up to you to decide if they should have a credit card, but we decided that their basic needs are met by us.

They don’t need anything else. Whatever else they want is not a need, so they should rather save up for it than go into debt.
Explain Depreciation

Explain to your teens the difference between a depreciating vs an appreciating asset.

For example, when you buy