Why Teaching Financial Literacy to Kids and Teens Is Important
For kids, smart money management starts with gaining financial literacy, feeling empowered to make the right decisions, and learning from their choices. You will have low-stakes, teachable moments if your child spends all their allowance on an unnecessary video game or app instead of saving, versus blowing a week’s pay on designer sneakers they can’t really afford when they’re 17, right?
For a little help in an environment that’s safe and easy to track and control, DCU has partnered with Greenlight. DCU members and their children can download the Greenlight app to gain financial literacy and help develop sound financial habits. Through the partnership, parents and kids can use the app to:
- Leverage smart money management features
- Set and achieve savings goals
- Access the Greenlight Level Up™ financial literacy game to make learning concepts fun and easy
- Assign chores and automate allowance
- Receive a free debit card (custom cards are available for $9.99)
Start With The Basics of Financial Literacy
When kids are young, start simple. Teach them the value of money and hard work. This can be done by giving them an allowance that’s tied to completing chores or achieving other objectives—then emphasizing the value of saving. Then, once they are older, dig into budgets, investments and even how credit works. The key is to start small, taking into account the age of your child, their interests, and maturity level.
Explain What Money Is
A child won’t become financially independent when they are older unless they have a basic grasp of money and how it works. To start, teach them about savings and debt, then give them a chance to start managing a small amount of their own money. Provide real-life examples, such as:
- Giving an allowance
- Paying for the completion of assigned chores
- Giving small rewards, like for making the honor roll at school
- Encourage the start of a part-time, gig business like lawn mowing
Regardless of how you allow your child or teen to earn, let them save toward a purchase that’s either practical or excites them, ensuring they are invested for the duration. Or, to teach debt, you could offer to cover a purchase your child would like to make by having them pay you back over time.
It also helps kids and teens to learn about needs versus wants. A child needs to have shelter in order to survive but they may want a smartwatch because friends in their peer group have them.
The Value of Saving and Having Goals
Once your child has a grasp of saving and debt, go deeper. Introduce having short and long-term goals, including how they may need to save to achieve those goals. A short-term goal could be saving for a new video game or sporting equipment while a long-term goal might be saving for a first car or college education.
Once the child proves adept, you can work with them on saving for short and long-term goals simultaneously.
Introduction to Budgeting
One of the best ways to give children hands-on experience with money is teaching them budgeting skills. Whether you use Google spreadsheets, an app such as Greenlight or other means, providing budgeting experience is a surefire way to teach children about saving, debt and more.
Make Learning Fun With Games and Apps
Knowing what money is, how it works, the value of it, and learning how to budget are all critical, however financial literacy for kids and teens only works when they are engaged and feel empowered to learn. The Greenlight app can be tailored to fit your family’s needs, with real-time tracking, educational content including a financial education game, and a Savings Growth Calculator.
Some other games worth checking out include:
- Monopoly (ages 8 and up)
- Financial Football (elementary and middle school)
- Lights, Camera, Budget! (elementary and middle school)
- The Stock Market Game (high school)
- Misadventures in Money Management (high school)
If you prefer old-fashioned, part-time gigs that involve real money, younger children could open a lemonade stand for part of the summer, or teenagers could start a babysitting or lawn mowing service. Whether through a game, real-world scenario or even letting them help plan the next family vacation, the goal is to provide your child with a safe, honest space to learn and ask about money.
Monitoring Progress and Celebrating Milestones
Financial literacy for kids and teens is complex and ever-evolving. To become proficient, it requires continued learning, teachable moments, an ongoing dialogue and finding ways to keep your child motivated. With the right mix, your child can become more trustworthy and capable of self-managing money before many of their peers are ready. But it also requires tracking their progress, as you work with them to learn how to save, budget and spend responsibly.
DCU values its members and communities at large, including helping others become financially literate. Interested in learning more about DCU’s partnership with Greenlight and how the app can help teach your child financial literacy? See all the features and read the FAQs to learn more. DCU, a not-for-profit credit union, also helps kids save with UTMA Custodial Accounts, which can be opened using your minor’s Social Security number. Membership is required for using Greenlight or to open a UTMA Custodial Account.
Please note, membership is required to open any account or loan with DCU. Visit our membership eligibility page for more information.
Digital Federal Credit Union members are eligible for the Greenlight SELECT plan at no cost when they connect their Digital Federal Credit Union account as the Greenlight funding source for the entirety of the promotion. Subject to minimum balance requirements and identity verification. Upgrades will result in additional fees. Upon termination of promotion, customers will be responsible for associated monthly fees. See terms for details. Offer ends 11/12/2026. Offer subject to change and partner participation.
This article is for informational purposes only. It is not intended to serve as legal, financial, investment or tax advice or indicate that a specific DCU product or service is right for you. For specific advice about your unique circumstances, you may wish to consult a financial professional.
