Teaching Your Young Adults About Finances

When it comes to teaching your teenagers about smart financial living, it’s never too early to get the ball rolling. Learning these money management tips at an early age actually gives your young adults a step up in life once they leave your home for college or their first adult job. This kind of education lays a foundation for a strong financial future with healthy money habits. 

If you’re getting ready to embark with your young adult on a financial education journey, here are a few key things they’ll need to know:

The importance of budgeting.

Learning how to budget at a young age will go far in your young adult’s future, and it will help foster financial independence once they reach the age where they’re paying rent or mortgage, car payments, and insurance premiums. Budgeting can be taught at any age – if you give your child an allowance for chores they perform, you’re already on the right track. 

Setting financial goals early.

While it’s more common for adults to have clear-cut financial goals, it’s likely that your young adult has some of their own. Perhaps they want to buy their own car, or even smaller goals like attending a concert out of town. You don’t have to make a lot of money to set financial goals, as long as you’re realistic about them and know how you want to reach them. 

Checking and savings accounts and how they work.

If your teenager has a job – even if it’s just babysitting or helping out neighbors – they should have their own checking account so they can understand how banking works. Polam’s checking accounts have no minimum deposit requirement, and once your teenager has earned more than $100, they can open a Polam savings account. 

How to build and establish credit.

This may not be a huge concern while your teenager is in high school, but once they turn 18, it’s important for them to know how to build credit, and how your credit score can be damaged by late payments or applying for too many credit cards or loans. One way your young adult can start building credit is with a Polam VISA credit card, which they can use and pay off each month.