Teaching Youth Budgeting Basics

Start the Conversation: Teaching Youth Budgeting Basics

When was the last time you talked with a child or teen about budgeting? These conversations can sometimes feel daunting, but they’re incredibly valuable and youth are eager to learn.

Many high school students—and even middle schoolers—are beginning to feel the pressure of managing money, whether it’s from a part-time job, allowance, or simply thinking about the future. Teaching them the basics of budgeting early helps build confidence, responsibility, and a healthy relationship with money.

Here are a few simple, tangible ways to start the conversation:

Use Real-Life Scenarios

Next time you’re shopping—whether in a store or online—talk about how you decide what to buy, how you compare prices, and how you stick to a budget. This helps youth see budgeting in action.

Set a Savings Goal Together

Encourage them to save for something they want, like new shoes, a video game, or a trip. Help them break down the cost and create a simple plan to reach that goal over time.

Give Them a Budget to Manage

If they receive allowance or earn money, help them divide it into categories like “spend,” “save,” and “give.” This teaches balance and intentionality with money.

Talk About Needs vs. Wants

Discuss the difference between essentials and extras. It can be eye-opening for youth to think about how adults prioritize bills, groceries, and fun spending.

Use Tools and Apps

There are many budgeting apps designed for teens, or you can use something as simple as a notebook. The key is to track where money is going and reflect on spending habits.

Budgeting doesn’t have to be overwhelming—it’s a skill that grows over time. Start small, be open, and keep the conversation going. Your guidance can help youth stay afloat—and even sail confidently when it comes to money management.