There’s a lot we try to prepare our kids for in life, but often the one thing that truly impacts their wellbeing long term is their relationship with money. As a parent, you might be the only one giving them this education. And trust me, a few simple lessons can go a very long way.
If I had the chance to run just one workshop for 16 to 18-year-olds, here’s what I would teach them:
- Understand How Much Things Really Cost
Buying a car is a great example because it’s every teenager’s first taste of “adult” money decisions. We’d walk through it together:
- How much is the car?
- Will you save or borrow? If borrowing, what will that loan really cost over time?
- What are the ongoing costs? Insurance, petrol, rego, servicing.
- How much of your pay will you need to cover it, and still have money for other priorities?
This exercise shows young people the importance of planning ahead, and that big purchases come with more costs than just the sticker price.
- Budget Basics
It’s not about spreadsheets. It’s about making sure they understand:
- The difference between needs and wants.
- How to set aside a percentage of every pay for essentials, savings, and fun.
- The power of tracking where your money actually goes.
Even a simple budget or budget app can help avoid the common trap of living pay-to-pay (which is all too easy in your first years of earning).
- The Magic of Saving Early
I’d explain compound interest, but in plain English, the earlier you save, the easier it is to build wealth.
- Start by saving just $10–$20 from every pay, be disciplined and consistent.
- Build an emergency fund – money you can use for life’s inevitable curveballs.
- Saving is not a punishment. It’s about giving yourself freedom and choices in life.
- The Dangers of Easy Credit
Every year, kids are bombarded with “easy” credit: buy now, pay later, credit cards, phone plans with hidden fees.
- I’d teach them how interest works – and how quickly small debts can snowball.
- The importance of paying off full balances, not just minimums.
- When it comes to credit, just because you can, doesn’t mean you should.
- Money and Mindset
Finally, I’d remind them that money decisions are as much about emotions as they are about numbers.
- Be aware of envy and peer pressure. That feeling you had when a friend of yours went on a trip and you couldn’t for example.
- Understand that money choices should align with your values, not what your friends or influencers are doing.
- Learn to pause and think before spending impulsively.
- Learn to give back. If you live in Australia you are indeed lucky financially compared to many others. Always think about a way to give to a charity for example as part of your savings regime.
If we can teach our kids these five things, we’re setting them up for a lifetime of better choices, less stress, and more freedom. And while I’m still trying to get this into more schools, as parents and mentors we can absolutely start these conversations at home.
Article by Marc Bineham – Speaker, Coach, and award-winning author of The Money Sandwich