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If you’re raising a teenager in Ireland, you’re probably wondering how they grew up so fast. One minute it was bedtime stories, now it’s online shopping and “Can I get a debit card?”
The teen years are when they start rehearsing for adult life (and let’s be honest, sometimes they think they’ve already made it). That’s why this stage is the perfect time to teach them about money.
Financial planning is learning how to handle money wisely—budgeting, saving, spending, and planning for the future. It’s not about making them experts overnight, but giving them the tools to build confidence and avoid money mistakes down the line.
Let’s look at a few easy and practical ways you can help your teen become financially savvy, without the eye rolls.
Who Are Today’s Teens? What Parents Should Know About Gen Z
Generation Z—those born in the late ‘90s to early 2010s—are the newest group getting into investing, and they’re doing it their own way. They’ve grown up online, so it’s no surprise they’re using social media like TikTok to learn about money and where to put it.
They’re really into crypto, love the idea of impact investing (putting their money into causes they care about), and they’ve also shown interest in NFTs (Non-Fungible Tokens), which can be bought, sold, or traded for money, crypto, or even other NFTs.
What Do Teens Know About Managing Money?
A recent survey looked at how teenagers (mostly 15 to 17-year-olds) learn about and handle money. It provided a great snapshot of how young people today manage their finances—and what shapes their money habits.
Here’s what it found:
- Where they learn about money: Most teens (around 70%) say they learn about money from their parents or family. The rest—about 30%—pick up tips from social media, especially TikTok.
- How they manage their money: 61% of teens use mobile apps to track their spending, showing just how comfortable they are with digital tools.
- Spending habits: More than 80% said they shop online on a regular basis. No surprise there—this generation is growing up with everything just a click away.
- Talking about money: A massive 96% of teens think it’s important to talk about money. So they’re open to having those conversations—we just need to start them.
It’s clear that teens today are interested in money and want to learn more about it. As parents, teachers, or even just older role models, we’ve got an excellent opportunity to guide them in the right direction.
Practical Steps to Teach Your Teen About Money
Start the Conversation Early
Don’t wait for something to go wrong before you talk to your teen about money. Instead, bring it up in everyday situations—like when you’re doing the food shop, planning a family day out, or talking about saving for something fun. These are great chances to explain what financial planning really means. It’s not just about saving a bit here and there—it’s about having a plan for your money now and in the future.
You can explain things like saving for big goals (like saving for college or a car), the importance of having backup money for emergencies (because laptops break and trainers wear out!), and how even small savings can grow over time thanks to something called compound interest—basically, money earning more money.
It’s also a good time to chat about things like life insurance or income protection, so they understand how families prepare for unexpected events.
When you use examples that make sense to them, like replacing a mobile phone or saving for concert tickets, they’ll get it more easily. The key is to keep the chat relaxed and make money a normal thing to talk about.
Leverage Technology
Teens love their phones, so why not use that to your advantage? Show them simple budgeting apps, or even basic spreadsheets on their phone or laptop. These tools make it easy—and even a bit fun—to track where their money is going.
Watching their spending in real time helps them see how quickly things add up (yes, even those €5 iced coffees!). Using tech makes managing money feel more modern and less like a boring lecture, and it gives them a skill they’ll actually use in adult life.
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Encourage Saving
If you’ve already set up a savings account for your teen, now’s the perfect time to help them start using it with purpose. Talk to them about saving a portion of their pocket money, birthday money, or wages from a part-time job.
It doesn’t have to be a huge amount; just getting into the habit matters. Help them think about short-term goals, like saving for an evening out at the cinema with friends or a concert, and longer-term goals like college or driving lessons. When they see their money growing and actually getting them something they want, saving starts to make sense—and even feels pretty rewarding.
Discuss the Difference: Need or Want?
One of the easiest—and most valuable—money lessons you can share with your teen is how to tell the difference between needs and wants. Keep it relatable with examples they understand: they need things like school supplies or bus fare, but they also want things like the latest trainers or a Friday night takeaway.
This isn’t about cutting out all the fun stuff—it’s about helping them see what comes first. Encourage them to pause before spending and ask, “Do I actually need this, or do I just want it right now?” It’s a simple habit that can lead to smarter choices and better money habits down the line.
Involve Them in Financial Decisions
Including your teen in everyday money decisions is a great way to build their confidence and money skills. Whether you’re planning a weekend away, shopping for a new appliance, or setting a monthly budget, let them see how it all works.
Talk through your choices—why you’re picking one option over another, what things cost, and how you’re staying within budget. It gives them a real feel for how to manage money in the real world, and shows them that financial planning isn’t just for adults—it’s something they can do too.
Give Them Real-Life Experience
Nothing beats hands-on learning. If your teen gets pocket money, a part-time job, or birthday cash, encourage them to manage it themselves—but with some gentle guidance. You might try:
The 50/30/20 Method: Teach them to divide any money they receive into saving, spending, and investing.
- 50% Saving – For future goals like a car, college, or something big they really want.
- 30% Spending – For fun stuff now—like going to the cinema, grabbing food with friends, or buying something small they’ve had their eye on.
- 20% Learning/Investing – This can be used to grow their money (in a junior savings account or by learning about investing if they’re older) or saved for when something unexpected comes up.
You can adjust the percentages to suit your teen’s situation. The key is helping them see that not every euro should be spent right away—and that saving and planning give them more freedom in the future.
Let them shop for back-to-school or Christmas gifts with a set budget. It’s a safe and practical way to teach prioritising and smart spending.
Talk About Debt Early
Your teen may not have a credit card yet, but they will eventually. Explaining how credit works, what interest means, and how buy-now, pay-later services can lead to debt is a key lesson.
Use relatable comparisons—like how paying interest is like buying a pair of trainers but having to pay for it twice. That usually gets their attention.
Teach the Value of Long-Term Goals
Helping your teen save for something big—like a holiday after the Leaving Cert, their first car, or even a future mortgage—teaches them important life skills, such as patience, discipline, and goal-setting.
It also shows them that good things take time (and planning). To encourage the habit, you can offer to match their savings—for example, “Save €100 and I’ll add €25.” It gives them extra motivation and makes the goal feel more achievable.
And if you’d like to give them a little boost, parents in Ireland can gift up to €3,000 a year tax-free. It’s a great way to help with things like college costs or saving for a mortgage deposit, which leads us perfectly into the next topic…
Explain How Taxes Work
If they’re working part-time, chances are they’re seeing deductions on their payslips. Explain where that money goes and why it’s important to manage earnings after tax.
Explain to your teen that if they earn €100 from a weekend job, although they might expect to get the full €100 when they check their payslip, they only get €90. That missing €10? That’s tax. It goes toward things like hospitals, schools, and public transport.
But the good part is if they didn’t earn much that year, they might have paid too much tax, and can claim some of it back on Revenue.ie. That could mean free money back in their pocket!
Lead by Example
Teens might act like they’re not listening, but they’re always watching. They learn more from what we do than what we say. So if you’re openly budgeting, saving, and talking about your financial goals (and yes, even the mistakes), you’re showing them that managing money is something we all work on—no one has it all figured out straight away.
Let them see how you plan for things like retirement, why you have life cover or income protection, and how sticking to a budget helps you reach your goals. It shows them that financial planning isn’t just talk—it actually works.
Be smart with your money. Get a personalised quote today!
Get a Financial Planning Quote with LowQuotes
Before you start teaching your teen about money, it’s a good idea to check in on your own financial plan. Are your finances in good shape? Are you planning ahead for retirement or setting aside funds to help with your child’s education or future home purchase? What about life cover or income protection—are you and your family protected if something unexpected happens?
At LowQuotes, we make it easy to get a clear picture of where you stand. Get a free financial planning quote today and take the next step toward securing your family’s future while setting a great example for your teen.
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