Ever looked at your teen’s Amazon order history and wondered if you’re raising a budding entrepreneur… or just someone who really likes LED strip lights? You’re not alone.
Teaching kids about money is as appealing as flossing a crocodile’s teeth, but the stakes are high. Some money habits picked up in adolescence can stick around longer than that musty sweatshirt from Year 7.
Ready to spot the mistakes before your child’s bank balance starts resembling a tumbleweed convention? Here’s what to watch for.
1. Treating Money Like It Grows on Trees
That moment when your teenager says, “Just put it on the card,” and you stare into the middle distance reconsidering all your life choices.
Many teens see cards, apps, or even their parents’ wallets as portals to infinite cash. This isn’t their fault—digital transactions make money feel invisible, not real.
A 2023 study from the University of Michigan found that teens without hands-on experience managing cash or digital spending are much more likely to overspend as adults.
Why? Swiping a card doesn’t hurt like handing over a crisp tenner.
Tonight’s fix: Give your teen a set weekly allowance (not tied to chores, that’s a whole other argument), and pay it out in cash or through a prepaid debit card. When it’s gone, it’s gone.
If they splurge on bubble tea and can’t get a lift to their mate’s house, that’s a consequence with real-world teeth.
2. Bailing Them Out Every Time
It’s almost instinctual: Your child runs out of money, and you swoop in, cape fluttering, wallet open. Happens to the best of us.
But when parents turn into human ATMs, kids never feel the sting—and the lesson—of running out.
Research published in Child Development shows that parental “financial rescue missions” make kids less likely to plan or save. They come to expect a safety net, and it gets harder to say no as they get older (and their requests get pricier).
Try this instead: If your teen blows their spending money on a game skin or a third overpriced iced coffee, don’t fill the gap. Help them brainstorm ways to earn extra cash if they need it—babysitting, mowing lawns, pet-sitting for the neighbours.
The sting of “not enough” is the best motivational speaker around.
3. Keeping Them in the Dark About Family Finances
Many of us grew up thinking the family budget was classified information—right up there with the Colonel’s secret recipe. But keeping teens in the dark does them no favours.
They’re less likely to understand basic concepts like budgeting, bills, and what things actually cost.
The Money Advice Service in the UK recommends chatting openly with teens about money: the cost of the weekly shop, how much the electricity bill really is, why you compare insurance quotes like it’s an Olympic sport.
Kids who see behind the curtain grow into adults who are less likely to fall prey to payday lenders or rack up big debts.
Tonight, mention aloud what you’re paying for groceries, or share how you save for holidays. Invite them to help price-compare or calculate the cost of takeaway versus cooking.
You might get an eye-roll, but you’re planting seeds.
4. Modelling Bad Money Habits (Even Accidentally)
Ever find yourself telling your child to save, then moan about your own impulse buys the very next minute? Congratulations, you’re human. Kids don’t learn from lectures—they learn from watching you.
A survey by HSBC found that kids model their spending and saving habits almost entirely on what they see at home, for better or worse. That “treat yourself” moment you had on payday? Your teen noticed.
No one expects you to be a financial saint (and who could resist those half-price doughnuts?), but talking through your thought process—why you’re choosing to save, or how you avoid impulse buys—can be eye-opening for kids.
Share your mistakes, too. That time you bought from a dodgy online ad and got a suspiciously small “designer” handbag? That’s gold.
5. Avoiding Conversations About Debt and Credit
Many parents treat topics like credit cards and debt the same way they treat awkward questions about “where babies come from”: with a mixture of panic and stalling for time.
But staying silent leaves teens to learn from TikTok “finfluencers” who pitch credit cards as free money.
Research from the Money and Pensions Service highlights that teens whose parents discuss credit and debt are far less likely to struggle with credit card debt in their twenties.
Kids need to know how interest works, what happens when payments are missed, and why some “deals” are anything but.
You don’t need to give them a university-level lecture. Use a recent credit card offer or store finance option as a conversation starter. Calculate together how much a £500 gadget really costs if you only pay the minimum each month.
Spoiler: The answer will make you both want a lie-down.
Raising Money-Smart Teens Without Losing Your Mind
No parent wants to raise a 25-year-old who still can’t tell the difference between a want and a need (or expects you to foot their Uber Eats habit). The trick isn’t perfection—it’s persistence.
Model honesty, talk openly, let them make small mistakes now instead of huge ones later.
And if all else fails—remind them the Bank of Mum and Dad is closing for renovations. Indefinitely.
