As parents, we spend years preparing our children for academic success, social development, and personal growth—but how prepared are they to face the financial realities of adulthood? At Twelve Points, we understand that launching financially fit kids requires more than a piggy bank and well-meaning advice. It takes thoughtful guidance, open communication, and a willingness to let them learn—even through their mistakes.
Whether your child is in high school, heading to college, or recently graduated, now is the time to help them develop healthy financial habits that will last a lifetime. Twelve Points recently hosted the Financially Launching Your Kids webinar, featuring Senior Wealth Advisor Deborah Cartisser and Associate Financial Planner Carolyn Mullins to discuss this topic.
The Transition to Financial Adulthood
It’s easy to assume that a responsible teenager—one who gets good grades and comes home on time—is also ready to handle money. But financial decision-making requires a different kind of maturity. In fact, the parts of the brain responsible for long-term planning and risk assessment don’t fully develop until our mid-20s. That’s why even smart, capable young adults can struggle when left to manage their money alone.
This is where your role as a parent shifts—from financial provider to financial coach. Rather than controlling their decisions, it’s time to provide guidance, set expectations, and allow room for them to learn from experience.
Financial Literacy Starts at Home
One of the best things you can do for your child is to normalize conversations about money. Make personal finance a regular topic at the dinner table. Share your financial successes—and your missteps. Doing so creates a safe space where your child feels empowered to ask questions and seek advice.
Consider talking about:
- Needs vs. wants: A surprisingly tricky concept for many young adults. Help them understand that convenience items like food delivery or an upgraded phone may feel essential, but they’re often luxuries.
- Spending psychology: When it’s their own money, choices often look very different. Encourage them to be mindful of how spending reflects their values.
- Saving and investing: Introduce the power of compound interest early. Even modest savings can grow significantly over time. Roth IRAs and high-yield savings accounts are great starting points.
Let Them Fail (a Little)
It’s natural to want to shield our children from discomfort, but small failures now can prevent costly mistakes later. If they blow through their allowance or misuse a credit card, don’t rush to rescue them. Instead, have a calm, judgment-free conversation about what happened and how they can avoid the same mistake in the future.
As one webinar participant put it, “We’re not raising kids—we’re raising future adults.” That means letting them experience the real-world consequences of their choices in a safe and supportive environment.
Smart Strategies for Every Stage
Here are a few practical tools and tactics parents can use to support financial growth at different ages:
High School Years:
- Encourage part-time jobs and saving paychecks.
- Teach basic budgeting using the 50/30/20 rule (50% needs, 30% wants, 20% savings).
- Open a joint bank account or debit card with parental oversight.
- Introduce concepts like credit, interest rates, and investing in bite-sized lessons.
College and Early Career:
- Shift to a coach role: offer advice without micromanaging.
- Discuss credit card use, debt management, and credit scores.
- Help them set up and understand paycheck withholdings and tax implications.
- Emphasize emergency savings and the dangers of “lifestyle creep.”
The Power of Expectations
Many financial conflicts stem from misaligned expectations. Be clear about what you’re willing to pay for—and what you’re not. For example:
- Is their monthly allowance just for essentials, or does it cover social outings?
- What constitutes a legitimate use of an “emergency” credit card?
- At what point do you expect them to cover their own insurance, rent, or groceries?
Establish these boundaries early, and stick to them. Remember: enabling bad habits today often leads to bigger financial consequences tomorrow.
Embracing the Digital Toolbox
Today’s young adults are digital natives, so why not use technology to teach money management? A few recommended tools include:
- Greenlight: A debit card and financial literacy app for teens.
- Fidelity Youth Account: An investment platform for ages 13–17.
- YNAB (You Need A Budget): A budgeting app that’s free for students.
- Rocket Money: Tracks income and spending across multiple accounts.
- Next Gen Personal Finance (NGPF): Offers free online financial literacy games and lessons.
Final Thoughts: Be the Resource, Not the Rescue
If there’s one takeaway from our “Financially Fit Kids” webinar, it’s this: your child doesn’t need you to solve every problem—they need you to be a steady, judgment-free resource. Encourage them to come to you with questions, not just emergencies. Celebrate their financial wins and support them when things go wrong.
Your openness, honesty, and consistency will leave a lasting impression—and equip them with the tools they need to thrive on their own.
At Twelve Points, we believe financial wellness starts early and lasts a lifetime. If you’d like to explore more resources for you or your child, we’re here to help. Contact us today!
Watch the full webinar on YouTube: Financially Launching Your Kids – YouTube
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