Fredericksburg Parent

22 Fredericksburg Parent and Family • March 2026 WRITTEN BY NIKKI DUCAS Over the years, this money column has evolved as I am now in the throes of directing my own teens through financial literacy. It is my hope that I can help other parents of teens navigate money management with my real-world application through tracking expenses, budgeting with the 50/30/20 rule (needs/wants/savings), understanding credit, and starting savings early. My eldest just got his first paycheck and before all the money was spent on entertainment and junk food, my husband and I talked with him about setting money goals. We strongly suggested putting money into savings and tracking where he was spending his hard-earned paycheck. Now that he has a job, we moved from a Venmo debit card to a Campus Checking Account at Navy Federal Credit Union for his direct deposit. This account also gives him the option to put money into a savings account. It has been a great hands-on experience, as it has given him more financial autonomy while still under our parental guidance. These methods will prepare teenagers for financial indepen- dence and practical money management through hands-on experience and behavioral habits. I have always led my children to be practical with their money and am constantly providing opportunities to make money by doing extra jobs around the house. This has helped them understand that money is earned through effort and to be good stewards of the money that they earn. It's been a learning curve for me to acknowledge it's his money to spend even when I know he shouldn't spend it all before his next paycheck. My son learned this the hard way when his gas tank was on empty and he didn't have enough money to put gas in his tank before his next pay day. This lesson taught him the distinction between "Needs vs. Wants" – the need for gas before the want for soda. At the end of the day, teens are still children and it is not all work and no play. I've taught him to "Pay Yourself First" and set aside 10-20% of his paycheck for future savings before spend- ing it on anything else. At 17, this money can be for a gaming computer or a car, but as an adult he will need to allocate this money to an emer- gency fund or retirement. It is my hope that by teaching my teens how to manage their paychecks now, it will create a positive money mindset, allow them to practice self-control, and align their spending with their personal values into adulthood. family money Teaching Working Teens Money Management KEY TIPS INCLUDE: • Track Spending: Have teens use apps to monitor where money goes. (Spend – immediate, short-term enjoyment, Save – future goals or emergencies, and Share – charitable giving) • Budgeting - The 50/30/20 Rule: Allocate income: 50% for needs (cell phone bill, car insurance, gas), 30% for wants (entertainment, gaming), and 20% for savings (future goals). • Set Goals: Encourage saving for specific items to understand value. • Earn & Manage: Encourage jobs or chores to teach the (sometimes) slow accu- mulation of wealth. • Banking: Open checking/savings accounts for hands-on experience.

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