Raising financially savvy young adults

It’s a common sentiment: money management is a skill that many of us wish we had learned when we were younger.

In fact, learning how to manage money is one of the most valuable life skills a young person can build. This is because strong money management habits don’t happen overnight; they grow through everyday decisions, conversations and practical experience.

Helping teens understand how to save and spend their money wisely can give them confidence while also preparing them for financial independence.

Why is money management a good habit for teenagers to learn?

Introducing financial skills early helps older children or teenagers develop awareness of how money works.

When young people understand that money must be earned and thoughtfully managed, they become better equipped to handle real-world choices as they grow older. This could mean giving your teenagers financial responsibility as and when you think they can handle it, such as managing their own phone contract, or requiring them to save for a fun experience or big purchase (like a car).

A great way to introduce good financial habits for teenagers is through their own bank account. This is due to cause and effect: saving takes time, spending your money quickly means less for later, and most importantly, your financial choices matter.

While support is key for teens as they learn, a sense of ownership may encourage more thoughtful decisions rather than simply telling them what they can or can’t buy. Over time, teens who actively manage their own money could develop stronger budgeting skills and become more confident handling finances as adults.

How can I help my kids budget with everyday banking tools?

Forget the spreadsheets and cheque books.

When introducing budgeting to teenagers and older kids, it’s best to keep it simple. With most banking platforms available online and via an app, simply encouraging your children to check their balance and review their weekly or monthly spend, can be the starting point for a healthy relationship with money.

You can also teach the difference between a transaction account and a savings account to help teens understand that not all money has the same purpose. For example, a transaction account is for everyday spending, such as weekend plans with friends, while a savings account is designed to protect money set aside for bigger plans and purchases.

This separation can help reduce impulsive spending and make saving more intentional. IMB’s Everyday Unlimited Kick Start Account¹ works as a day-to-day transaction account for teens, allowing them to pay for everyday items while keeping savings separate. The Reward Saver Kick Start Account² is designed to reward regular and disciplined saving with great interest when they deposit $20 a month and make no withdrawals.

Practical features that make money management less stressful

The right banking features can make learning about money simpler for teens, and less stressful for parents. App-based banking tools such as balance visibility, transaction history and goal-setting features can help young people stay engaged with their finances without feeling overwhelmed.

IMB’s Everyday Unlimited Kick Start Account^1, for example, is a transaction account that lets teens enjoy everyday banking with no monthly account keeping fees or IMB transaction fees³. It comes with a Visa Debit Card⁴ that can be used with Apple Pay, Google Pay and other digital wallets so they can easily pay for things as they learn to manage their spending.

We hope that with tools like this, money management becomes part of everyday life for children and teenagers.

How can I further encourage financial independence for my teenager?

Encouraging financial independence for your teenager can be a tricky balancing act. On one hand you want and need to support them for most areas in their lives, particularly the necessities. On the other hand, they start to demand more freedom, from weekend plans to after school hangs.

A great way to introduce financial independence is through part-time work. Whether it’s chores at home, or through a part-time job, earning their own income will encourage teens to be more responsible with their money — because it will feel like they’ve earned it.

We know that raising financially savvy young people doesn’t happen overnight. It takes practical tools, regular conversations and experiences that help them learn by doing. We want teenagers to learn money skills that last a lifetime. That’s why we’ve created accounts tailored to young savers and spenders, like those offered in IMB’s Kick Start Package^1,2.

With the right advice and encouragement, teens can grow into adults who make confident, informed financial decisions, feeling empowered to shape their own financial futures.