Essential Tips for Teaching Money Management

According to the 2023 TIAA Institute-GFLEC Personal Finance Index, 30% of employed adults find it difficult to make ends meet and 19% do not have an extra $2,000 for an emergency. Where an individual learns about personal finances depends on their financial and personal background, time horizon, and risk tolerance. 

In a 2022 poll, the National Endowment for Financial Education found that 88% of U.S. adults believe their state should require a personal finance course for high school graduation. Thirty-five states do mandate personal finance courses for graduation. Learning and implementing financial lessons can lead to lifetime financial security and confidence.

From relatable examples to listening to podcasts, here is how to teach personal finance to others, whether students, family, or friends.

Introducing Personal Finance

The earlier students learn about personal finance, the better. Children are exposed to money long before they have any of their own. According to a study conducted by Money Advice Service, a UK-based, government-backed organization, some financial behaviors are developed by age seven. Teenaged individuals have already made and witnessed several financial decisions, influenced by what they see at home, rather than in the classroom.

In the U.S., the minimum legal age for one to be employed is 14 years old. Before an individual can make a living, they should know personal finance. Teaching teenagers about personal finance can help set them up for financial security and help lessen the anxiety commonly associated with finances. 

Set Financial Goals for Students

Financial planning may be new territory for some, but there are relatable concepts, such as goal setting, that teenagers and young adults have heard of. Identifying their goals can be used as an aid in teaching students to budget for the stages of life from teenage years to retirement age.

Saving for a prom dress, buying a car, and going to the movies with friends are all common goals teenagers may have that can help connect with students and identify which financial concepts will resonate with them. Basic budgeting techniques may help them reach these goals. As a result,  teenagers learn about long-term saving, understanding bank statements, and building money habits.

Encourage Students to Research Financial Information

When it comes to finance, understanding where the information comes from is extremely important. According to data from the Federal Trade Commission, consumers reported losing more than $10 billion to fraud in 2023. Educators can help students develop their critical thinking skills as they learn to identify credible financial resources. When working on research projects and introducing financial concepts, remember to showcase .gov or .edu resources and how these are different from blogs, financial influencers, or secondary sources.

When helping Gen Zers or millennials, there’s a good chance they are looking to social media platforms for advice. TikTok is a common place to find videos featuring financial tips or money hacks. Reading blog posts that cover financial topics is also a common source, so setting up a personal finance blog or website may be beneficial.

Make Personal Finance Relatable for Teens

When teaching financial concepts to teenagers or young adults, make the content relatable. Personal finance lessons rooted solely in mortgage principles, for example, might be hard for teens to grasp since they are far from purchasing a home. Discussing paychecks that one receives from a first job can help one understand how taxes work. 

Craft Effective Lesson Plans

Several resources provide sample lesson plans that can be easily modified for age, grade level, and potential disability considerations. Here is a list of organizations with teen-focused lesson content that may be a useful resource.  

• Practical Money Skills: Topics covered in these downloadable lesson plans cover banking, budgeting, and understanding the role of money in one’s life. The site also offers resources for games that can be integrated into the lessons such as “financial football” and apps to help calculate the cost of lunch and prom. 
• Fool Proof Me: This independent organization helps students develop critical thinking skills used to recognize scams and understand the policies affecting financial well-being. The organization features a downloadable curriculum for those teaching middle school, high school, and homeschool students. 
• We Are Teachers: We Are Teachers covers many topics, but the most notable is that it lists sample lesson plans defining Bitcoin and other forms of cryptocurrency for older teens. There are also lesson plans explaining charitable donations, organization mission statements, and decision-making for middle school and high school students.
• Investopedia’s Financial Literacy Resource Center contains downloadable lesson plans for elementary school educators.

Leverage Books and Podcasts for Financial Education

Integrating age-appropriate books and podcasts can help deliver important personal finance lessons. Below, find options for a classroom. 

• Broke Millennial: Stop Scraping by and Get Your Financial Life Together: This book by Erin Lowery is Ideal for those new to personal finance. It heavily discusses debt and credit and understanding an individual’s relationship with money.
• Get Good with Money: Tiffany Aliche breaks down the basics of budgeting and building financial habits using an easy-to-follow 10-step plan. 
• Financial Literacy Boot Camp for Teens and Young Adults: In just 50 pages, entrepreneur Michael D. Thomas provides a basic understanding of financial concepts making it easily digestible for young minds.
• Teen Money Matters: In less than 30 minutes, teens will have common personal financial myths or confusions demystified as the podcast hosts discuss things such as insurance, investing, and more.
• Popcorn Finance: Though not geared toward teens, the goal of the Popcorn Finance podcast is to deliver personal finance lessons in the amount of time it takes to enjoy a bag of popcorn. Without ever getting too overwhelming, the podcast explains the basics of common financial questions such as how to save for college, the impact of medical debt, and how personal branding affects careers.

The Bottom Line

Developing personal finance knowledge isn’t restricted by age and can be easily tailored to relate to teenagers. The lessons teens absorb in financial literacy coursework can assist them with money management through adulthood. It can also help them build greater confidence and make wiser financial decisions.

Various methods and resources for teaching personal finance can provide guidance.