Teaching Kids About Money: Part 3- Late High School and College

Welcome back to the LifeCrafter Money Sense blog!

As your child prepares for college and independent living, the financial lessons you teach them need to change, too. This final part of our series is all about helping them get ready for this new chapter. It covers everything from managing real expenses to understanding credit and student loans.

Ages 18+: Preparing for True Independence

At this stage, the goal is to help your child develop the skills necessary for a financially secure adult life. Now is the time to build on the lessons of budgeting and saving and introduce more complex topics, such as credit and debt.

Transitioning to an Adult Account

A teen checking account was a great starting point, but an adult account offers more freedom and responsibility. Help your child open a checking and savings account in their own name if they haven’t already. Please encourage them to pick a bank with a good mobile app and no monthly fees. This is the moment to hand over the reins of daily money management entirely.

Encourage Budgeting Apps: Encourage them to continue using a budgeting app, such as Mint or You Need a Budget (YNAB). These tools can link to their accounts, automatically categorize spending, and provide a comprehensive view of their finances. This is no longer practice; it’s how they will manage their money from now on.

Understanding and Building a Credit Score

A credit score is a three-digit number that shows lenders how responsible you are with borrowed money. It’s an essential part of an adult’s financial life, affecting their ability to rent an apartment, obtain a car loan, or secure specific jobs. A good score can save them thousands of dollars in interest over their lifetime.

Building credit safely: The safest way to start is by making them an authorized user on one of your credit cards. This gives them a card with their name on it, and as long as you continue to make on-time payments, it helps them build a positive credit history. Another option is a secured credit card, which requires a deposit but acts like a regular credit card. It’s a great way to learn responsibility without the risk of high-interest debt.

Navigating Student Loans and Financial Aid

If college is next, you need to sit down and review the financial aid package together. It isn’t very easy, and your child must understand the details.

Know the Difference: Explain the difference between grants and scholarships, which are “free” money that doesn’t need to be paid back, and student loans, which do. Help them understand the terms of their loans, including the interest rates and repayment plans. Discussing this honestly will help them know the debt they will have after graduation.
Create a College Budget: A budget is essential for college students. Work with them to create a detailed plan that includes tuition, books, housing, food, and social activities. This process helps them prioritize needs over wants and teaches them to be realistic about their spending.

Series Summary

By starting early and adapting your lessons as your children grow, you can equip them with the skills they need for a financially secure future.

Part 1 (Ages 7-10): We introduced the basics of money through hands-on activities. Lessons focused on earning money through chores, the three-jar budgeting system (Spend, Save, Give), and making shopping a learning experience.
Part 2 (Ages 13-17): The lessons moved toward greater responsibility. We covered how to introduce a teen checking account, create a simple budget, and understand the dangers of debt while practicing delayed gratification.
Part 3 (Ages 18+): The focus shifted to independence. We discussed opening adult bank accounts, building a credit score, and navigating the complexities of student loans and college budgeting.

By providing these lessons and tools at each stage of their development, you can help your children become financially responsible and confident adults.

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Larry Marvin

LifeCrafter Money $ense

Sources

How to Improve Your Credit Score. https://blog2.theagencyre.com/how-to-improve-your-credit-score/

(2024). Managing Your Finances. The Triangle Tribune, 26(16), 5A.

How do you build credit with no credit? | CRC. https://www.creditreportscanada.ca/2019/07/15/how-do-you-build-credit-with-no-credit/

LifeCrafter.org. (2025). Gemini. https://gemini.google.com/app/f84041c46c538967

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Larry Marvin

Larry Marvin is a graduate of Eastern Michigan University and a veteran of the U.S. Air Force. His career spans over fifty years as a corporate trainer, medical administrator, small business owner, income management coach, and public speaker. He has conducted over 300 workshops, classes, and seminars during his years as a corporate trainer on such topics as budgeting, debt elimination, banking, saving plans, budgeting software, spreadsheets, and investing basics.Larry has conducted budgeting and debt elimination seminars at U.S. Steel and UAB Special Studies.
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.