Best Way to Teach Money Management to a Teenager
This post about how to teach money management to teens is brought to you by Current. All opinions are my own.
It happened. That sweet little baby girl that I gave birth to, what feels like just a few years ago is now actually a 14-years-old freshman in high school. She is smart, beautiful, has a level head on her shoulders, actively involved in school and church and has a bright future ahead.
Teaching Teens About Money
In just 3.5 short years, our daughter will be ready to fly the coop. That gives us have 3.5 more years to get in as many life lessons as possible. We’ve constantly drilled into her to be grateful for all things. She has a generous spirit when it comes to volunteering. Driving will start in a few months. She has learned to cook. We are still working on laundry. All-in-all, thankfully our daughter has a good head on her shoulders. Many of life skills I know she will do fine with, but there is one area of concern that is kind of a big deal… Finances.
Something I have learned as a mom is I must teach money management to my teen. It can be scary and frustrating, but it doesn’t have to be. For years, we have tried various ways to help her learn about money – but this year has been a real eyeopener as to how much learning she needs. With her color guard and new high school social life, she has been given money to use for various things and well let’s just say we would like to have seen it spent better. Thankfully, how we give her money and how she can use it is all about to change, thanks to Current.
Debit Card for Teenagers to Help Teach Money Management
Current is a debit card, designed specifically for teenagers. The Current debit card gives kids independence. It’s the perfect way to keep a watchful eye on your kids without having to get involved every time they want to spend money and is a great tool to teach teens about money management. Bonus: it’s easy and convenient to use!
When I was growing up, my parent’s opened a checking account for me in hopes that I would learn money management that way. Getting money out was a joke. As a teen, I often wrote hot checks – unknowing of how much actual money I had. The whole process was tedious and frustrating.
Current offers a solution to the frustration that I experienced as a teen. With this debit card, the teenager and parent know exactly how much money is in the Current account, and how it is being spent. It is a practical teaching tool that helps with financial boundaries and education.
A few years ago, I was sitting in a parent meeting at church and something was said that stuck out to me. If your child is going to make mistakes, it’s best that they do them under your roof so that you can help them and guide them to a solution. While I know that my kids will make financial issues (don’t we all?) – if they can learn the basic principals and make any mistakes and find resolution at home, think how much better they will be prepared when they do hit that bump in the future.
Here is how Current works.
Current Debit Card App
First, this Current debit card speaks teen. With the debit card, there is an accompanying app. The Current debit card app is both for the teens and parents and is a fabulous tool to teach money management. It serves as a virtual wallet for the teen and as a control panel for the parents.
On the teens’ app, they will see their money and options for how they use it. The Current app gives your teenager 3 virtual wallets. One for spending, savings, and giving.
This will help teach your kids the basic principals of money management. The app even has the option to automate savings through a round-up feature.
Here is more on the virtual wallets offered in the Current app:
Your kids can easily see where their money is and how to use it. They can donate, automate savings and if needed – request additional funds.
On the parents’ app interface, you can automate deposits, as well as set limits and see where your kid is spending their money. There are no additional fees for transactions.
Automate Allowance – Digitize Your Kids Allowance!
One of my favorite features is the ability to automate her allowance payments. That’s right, no more having to have cash or worry about her losing it (that NEVER happens.) We set up a weekly payment for our daughter’s allowance that is deposited every Friday.
Chore for Payment
Another fabulous feature of the Current debit card app is the Chore for payment feature. You set up a chore, such as clean your room, decide on how much your teen should be paid and the frequency. Once your child marks the chore as complete, you will be notified to review and finalize the payment.
Set Spending Limits
Another great benefit of the Current debit card for teens is the ability to limit spending on categories.
If you are needing to give your child money often, you will want to setup Current pay. WIth Current pay, you are able to do a quick, real-time payment between your account and your child’s account. This was super easy to do. Just click Current Pay and make a deposit from your bank to the parent account. This will let you have money on hand to quickly give your child if you ever need to give above anything that is automated, such as an allowance payment.
Teaching Teens About Money
Money is a foundational element of life. Teaching your teens about money is critical. The Current debit card is an amazing tool to get your teens acclimated to budgeting, spending, saving and giving. And the best part? The whole process of teaching your teens about money involves technology that your kids are already familiar with, their phone! You don’t have to worry about your teen losing their cash. You can see exactly where their money is being spent. The best part, of course, is that your teenager is learning how best to manage their finances. Parenting is hard, so glad there are tools like Current to help us teach money management to our kids.
Current Debit Card Pricing
The cost of the Current Debit Card is affordable and well worth it. It is just $3 a month for 1 kid or $4 a month for 2 kids. If you have more kids, it’s just a $1 more a month per kid! There are no additional fees, unless they spend internationally (5% fee) or if you need to replace their debit card ($5).
More About Current
Current is a financial technology startup that enables people to more effectively manage their money with family and friends
- Current combines a free debit card for each of your children with a mobile app
- Current does it for a one, flat annual fee with no hidden charges or upselling
- Current’s flexible, API-based platform adapts to the needs of each user, allowing parents to transfer money, automate allowances, set up and reward chores, put spending control in place and maintain visibility into their children’s spending with real-time alerts.
Learn more about Current
What tips do you have for parents on how to teach money management to teens?
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