How to Teach Personal Finance to Teenagers

Prepare teens to make better money choices with lessons in personal finance.

To many teens, purchasing that perfect -- albeit pricey -- pair of jeans seems substantially more important than saving cash for future financial obligations, such as college tuition. While it is common for teens to live in the now in regard to their spending patterns, many parents and educators try to modify this behavior in an attempt to prepare these youngsters for the serious financial obligations of the real world. If you intend to teach teens money management, make your lessons engaging, practical and interactive for optimum success.

Instructions

1. Get parents involved. Compose and send home a note regarding your planned personal finance lessons, allowing parents the opportunity to talk to their kids about these topics during this time as well, if they so choose.

2. Activate prior knowledge. Ask students about their money management habits as you begin your lesson. Engage them in a verbal discussion of this topic, or ask them to put pen to paper and journal about it, giving them prompts such as, "You just received $100 for your birthday from Aunt Gertie. What do you do with this money?"

3. Create lessons that are relevant to learners. While topics such as retirement accounts and major investments are important in the grand scheme of things, they will likely hold little importance to your teen learners. If you mention these topics, gloss over them quickly, giving learners only the most basic of information. Focus instead on topics directly connected to your teens, such as opening a checking account and saving for college.

4. Provide practical tips. As you teach about different financial options, create sheets that contain numbered tips. For example, if you are teaching about savings, your sheet could include tips such as: Decide upon a certain amount to save, set goals for your savings and open a savings account so you get interest on this money. Give students these sheets and encourage them to hang on to them and put the tips to use.

5. Create a model economy. Instead of simply telling your teens how they should use their money, allow them to try their hand at money management. Pair teens into family units and have them engage in money-related role play. For example, you could have teens select jobs and research how much they would make at these jobs, researching housing and select a residence and gather information on bills to see how much money would be going out the window paying these necessary expenses.

References

• Washington Department of Financial Institute: Fun Activities That Teach Kids About Money
• The Mint: Fun Financial Literacy Activities for Kids, Teens, Parents and Teachers