Thriven Info – MAY 2021

Tips for teaching your teen about money management

As a parent, you want to encourage your child to make good choices and learning how to manage money is a part of that process. While the early years might be spent teaching the basics of money and how it is used, the teen years bring an additional set of challenges. Allowances and money earned from jobs, as well as peer pressure to buy the latest and greatest, can add a whole new dimension to learning the ropes of managing money. However, these challenges create a new set of teaching opportunities. The following tips from Thrivent Financial can help you and your teen get on the right track towards establishing a financial foundation to last a lifetime.

1.) Create spending and savings patterns: Start by instilling the values of spend, save, and share in your teen. First, discuss using 10 percent of each child’s earnings for charitable contributions so that they can learn the value of giving back. Next, take an additional 40 percent and put it into a savings account. The remaining 50 percent can be used at the child’s discretion. Setting some easy-to-understand patterns while they are living under your roof can help kids develop good budgeting habits.

2.) Get started on a path to build credit: Set up a checking or savings account, make regular deposits and keep the account in good standing. Getting your son or daughter started on the right financial foot today may make it easier for them to someday buy a new car, mortgage a home or secure other types of loans. As an added bonus, having a checking or savings account allows your teen to learn about online banking and using ATMs. Sometimes they can even build credit without the risk of credit cards if you co-sign a small overdraft protection line of credit on the checking account. You can monitor its use and help encourage the student to pay it off as soon as possible after it advances.

3.) Set goals: Have your teen write down a list of certain items or special gifts that they would like to buy with their money and set a reasonable date for the goal to be accomplished. Having an end goal in mind can help teens put away the money needed for that special something and can serve as a great lesson on how to meet those goals through proper money management.

4.) Begin saving for retirement. Yes, it is never too early to think about retirement. If your teenager is working, he or she should consider opening an IRA. Even the smallest savings can turn into a considerable amount if given enough time.

5.) Don’t bail them out: This is one of the most difficult, yet important lessons to teach. If, despite all your best efforts, your teen gets overextended on credit, take a firm hand. Let them experience the consequences of bad financial decisions. It’s better to help them take responsibility for a $2,500 debt than a $25,000 debt later on!

The teen years can be challenging even for the most patient parents. However, by teaching important lessons about money management early on, you might be giving your son or daughter the gift of a lifetime of good financial habits.

This article was prepared by Thrivent for use by Janet Geist. She has offices at 12021 Pennsylvania St, #108 in Thornton and can also be reached at 303-451-7297 or

About Thrivent Thrivent is a not-for-profit financial services organization that helps Christians be wise with money. As a mission-driven, membership-owned organization, it offers its more than 2 million members and customers a broad range of financial products, services and guidance to help them obtain a life of contentment, confidence and generosity. Thrivent and its subsidiary and affiliate companies offer insurance, investments, banking and advice over the phone, online as well as through financial professionals and independent agents nationwide. Thrivent is a FORTUNE 500 company with $134 billion in assets under management/advisement (as of 12/31/18).For more than a century it has helped Christians make wise money choices that reflect their values while providing them opportunities to demonstrate their generosity where they live, work and worship. For more information, visit You can also find us on Facebook and Twitter. THRIVENT IS THE MARKETING NAME FOR THRIVENT FINANCIAL FOR LUTHERANS. Insurance products issued by Thrivent. Not available in all states. Securities and investment advisory services offered through Thrivent Investment Management Inc., a registered investment adviser, member FINRA and SIPC, and a subsidiary of Thrivent. Licensed agent/producer of Thrivent. Registered representative of Thrivent Investment Management, Inc. Advisory services available through investment adviser representatives only. 2684447-081419

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