Welcome back to the LifeCrafter Money Sense blog! Today is Part 2 of our series, where we will discuss financial lessons and skills for teenagers ages 13-17.
Next Steps for Your Teen
This week, we’ll explore how to give teenagers the tools and responsibility they need to manage their finances. We will cover topics like introducing a debit card, creating a budget, and understanding the risks of debt. By letting them take on more financial responsibility, you’re not just teaching them how to handle money—you’re preparing them for a financially independent future.
- Give More Financial Responsibility: Increase their allowance and have them take on more financial responsibilities, such as paying for their own clothes, entertainment, or phone bills. This forces them to make real-world budgeting decisions. If they run out of money before the next allowance, don’t bail them out. The consequence of running out of money is a powerful lesson.
- Introduce a Debit Card and a Simple Budget: Get a teen checking account with a linked debit card. This helps them navigate the world of digital money. You can have them use a simple spreadsheet or a budgeting app to track their income and expenses. This is the perfect time to introduce the 50/30/20 rule: 50% for needs, 30% for wants, and 20% for savings.
- Discuss the Dangers of Debt: Talk to them about credit cards and debt. Explain how interest works and how easily it can lead to debt spiraling out of control. Use a credit card to show them how to make a purchase and then immediately pay it off to avoid interest charges. If they have a part-time job, help them set up a direct deposit into their checking account and teach them how to read a pay stub, explaining deductions such as taxes.
- Practice Delayed Gratification: When they want a new, expensive item, challenge them to save for a portion of the cost. This teaches them patience and the satisfaction of earning something they’ve worked for.
- Money Management Tools:
- Greenlight: This is a debit card and app designed specifically for kids and teens. Parents can set spending limits, assign chores, and pay allowances directly through the app.
- FamZoo: Similar to Greenlight, this app uses virtual IOU accounts to track money, making it easy to manage allowances, chores, and savings goals.
- Spreadsheets: A simple Google Sheet or Excel file can be an excellent way for teens to track their spending and see where their money is going.
Join Us Next Week
Please join us next week for Part 3, the final installment in our series. We’ll discuss financial lessons for high school students and college kids, including how to handle student loans, build a good credit score, and use advanced money management tools.
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Larry Marvin
LifeCrafter Money $ense
Sources
9 Best Alternatives to FamPay for Teen Banking – Startup20 India 2023. https://www.startup20india2023.org/best-alternatives-to-fampay/
Day 4 – Everything You Need To Know About Emergency Funds – Making Sense Of Cents. https://www.makingsenseofcents.com/2016/08/day-4-everything-need-know-emergency-funds.html
LifeCrafter.org. (2025). Gemini. https://gemini.google.com/app/f84041c46c538967
His passion is teaching and equipping people with the financial knowledge they need to act in the best interest of their money and family.
He is passionate about his faith, has been married to his wife for 54+ years, and has three adult children and fourteen grandchildren.
Larry Marvin is the co-founder and Executive Director of LifeCrafter Foundation.
