10 essential money tips for your Teens

Hugh Austin

Private Client Adviser, Cheshire

As a parent or grandparent, you play a pivotal role in helping the teens in your family navigate the world of money.  Here’s our top 10 money tips to help you support them as they embark on their financial journey.

  1. Encourage opening a bank account

Most UK banks offer accounts designed for young people, often including fee-free banking, a debit card and mobile apps.

 Features to look for:

  • Budgeting tools to help them manage spending.
  • Savings options with competitive interest rates.
  • User-friendly mobile banking features.

Expert tip: Starting a relationship with a bank now can pave the way for future milestones, like loans or credit cards, when they’re older.

  

  1. Understanding income

Their first job is an opportunity to earn money, as well as learn how to manage it responsibly.

  • National Minimum Wage: As of 2025, the National Minimum Wage for 16-17 year-olds is £7.55 per hour. Check for updates on the government website.
  • Income tax and National Insurance: Income Tax applies if they earn more than £12,570 a year. Over 16 year olds pay mandatory National Insurance if they are an employee earning more than £242 per week from one job, or are self-employed and making a profit of more than £12,570 a year.

Expert tip: Help them understand their payslips. If they have multiple income sources, guide them to HMRC to ensure they’re paying the right amount of tax.

 

  1. Build a savings habit
  • Set goals together: Whether it’s for driving lessons, a holiday, or future education, having a target can keep them motivated.
  • Use savings accounts: Many banks offer accounts with higher interest rates for young savers.
  • Save regularly: Encourage them to set aside part of their income to build a safety net for future needs.

Expert tip: Help them set up automated transfers to make saving effortless.

  

  1. Teaching the art of budgeting

Budgeting is a life skill that will benefit your teens throughout their lives.

  • Track expenses together: Show them how to use a notebook or budgeting app to monitor their expenses.
  • Avoid impulse spending: Encourage them to think critically about purchases—is it essential or something they can wait for?

Expert tip: Check bank statements regularly for any overspending or errors.

  

  1. Future education and training

Many 16-17-year olds are planning for further education or training, which comes with its own financial implications:

  • Research costs: Help them look into tuition fees, accommodation expenses, and potential student loans.
  • Apply for support: Explore grants, scholarships, and bursaries that may be available to reduce costs.
  • Part-time work: Balancing part-time work with studies can provide a valuable income stream. Just ensure it doesn’t interfere with their education.

 

  1. How to manage credit and debt
  • Learn about credit scores: Paying bills on time and avoiding overdrafts can positively affect their future credit score.
  • Be cautious of payday loans: These can seem tempting, but often come with exorbitant interest rates and fees.

Expert tip: Encourage small, responsible financial habits like paying their phone bill on time to build a good credit history.

 

  1. National Insurance numbers and tax returns

If your child is earning an income, they’ll need to understand how taxes work.

  • National Insurance number: They’ll receive this around their 16th birthday. Help them keep it safe.
  • Self-employment basics: If they’re earning part time or through freelancing, guide them on how to file a tax return to avoid penalties.

 

  1. Explore investment options

Investing might seem far off, but starting early can have significant benefits.

  • Junior ISAs: If you’ve set up a Junior ISA, they’ll gain access at age 18. If not, they can open one themselves from age 16.
  • Learn the basics: Do research together and emphasise the importance of scepticism about returns that seem ‘too good to be true’.

 Expert tip: Discuss investment options together to build confidence and understanding.

 

  1. Financial education resources

Today’s digital world offers plenty of resources to teach teens about managing money

  • Online Tools: Websites like MoneyHelper and the BBC’s Bitesize offer free guidance tailored to young people.
  • School Programs: Some schools offer financial education lessons. If your child’s doesn’t, maybe they could consider suggesting it.
  • Apps for Teens: Apps like GoHenry or Revolut Junior can teach budgeting and saving in an interactive way. Ensure any apps are FCA-regulated.

 

  1. Learn from mistakes

Everyone stumbles financially at some point, and teens are no exception. Whether it’s overspending or forgetting to track an expense, teach them that these experiences can lead to better decision-making in the future.

In summary

Whether you’re a parent, grandparent or guardian, helping the teens in your family to understand money will give them the tools to achieve financial freedom and success later in life.

Here’s to helping them build a brighter financial future – you’ve got this!

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