By Abby Betz, MSW, LCSW – April 2, 2025 –

As working adults, many of us probably look forward to one specific day of the week – “payday.”  We understand the importance of being financially responsible and budgeting for bills and expenses, but when did we learn about this vital part of everyday life? Who taught us about money management? Did we learn this skill from our parents, at school from teachers, or through trial and error?

Money management and personal finance are important concepts that most of us don’t think twice about and just go through the motions to survive. However, many of us most likely wish we had learned the fundamentals sooner. Having a basic understanding of money management can actually give you an advantage when entering the workforce and lessen future anxiety about achieving financial stability. 

Unfortunately, most young people are not provided with the opportunity to learn about personal finance and how to be financially independent. Students are not being taught how to budget, invent, and save. In fact, according to the Council for Economic Education, in 2022 only 23 states required students to take a class in personal finance in order to graduate from high school.

As parents and guardians of young children, it is up to us to teach our children the importance of money management from an early age and ensure our kids are prepared to be successful in the future. It is crucial to introduce the value of money by first having children earn an allowance (and “double bonus” if the allowance is tied to a chore that also teaches responsibility and instills a strong work ethic.) By having your child earn an allowance, you are teaching them the value of money and they are also then able to make choices for themselves regarding how to spend their money.

As children turn into teenagers, it is important to encourage summer or part-time jobs to help teach financial responsibility. Research has shown that young people who have jobs are more likely to be better at saving and budgeting money as adults. Parents can help make sure a portion of a child’s paycheck is being saved, and it is okay to expect kids to help pay for minor expenses such as gas money and mall trips with friends. Introduce teenagers to the world of credit cards and discuss the concept of borrowing money and debt.

Helping set up a budget, making sure they understand employment benefits, and encouraging young adults to invest money as they get older is also vital information to have to make sound financial decisions.

Letting your children know you are available to help can reduce anxiety and overwhelming feelings they may experience as they venture out into the workforce. In addition, providing a positive example (and including your children when it is appropriate) of how to achieve your goals through budgeting, saving, and investing will give them confidence that they can do the same.