Empowering choice – How Teens Build Money Confidence – Our friends at Community Financial Credit Union (CFCU) in SE & Northern Michigan offer tips and advice for how to raise financially strong, money-smart teens.
Empowering choice – How Teens Build Money Confidence
Financial independence isn’t one big leap; it’s a rhythm of small wins. In my house, we talk about giving kids both cushions and wings: a safe place to practice and the confidence to try.
As a mother and the president and ceo of Community Financial Credit Union, I’ve seen again and again that money, when managed with intention, can be a tool of empowerment. Helping teens build financial confidence isn’t just about dollars and cents, it’s about preparing them to make choices that reflect their wildest dreams.
Empowering choice – How Teens Build Money Confidence
Q – How can parents start introducing financial independence in their teens?
Tansley Stearns / CEO & President of Community Financial Credit Union – Keep it simple and make it real. I like starting with three buckets: spend, save and give, and letting kids actually move their dollars into each bucket. Encourage your teen to set one small, visible goal, such as a new makeup product or a gaming upgrade. Then, break it down into weekly steps they can track. When you’re out shopping or ordering online, turn everyday moments into learning opportunities and talk to them about trade-offs. Ask questions like, “If we grab this today, what needs to wait?” Those conversations, not lectures, help to build instincts that last.
When your child is ready, open a starter account so progress includes the use of financial tools early and often. At Community Financial, our teen savings (13 to 18 year olds) pairs nicely with our Grow Your Change program, which rounds debit purchases to the next dollar and moves the difference into savings. Teens love watching those round-ups add up because it’s their decision and their dollars doing the work.
Q – What are some first steps teens can take to practice money management?
Tansley Stearns / CEO & President of Community Financial Credit Union – A first paycheck, whether from babysitting, yardwork, or a part-time job at the local coffee shop, is a golden moment. Sit down together, look through the pay stub, and talk about taxes and deductions. Then, set a plan: automate a bit to save, decide which essentials they’ll cover (like gas, their phone bill, or streaming subscriptions), and leave room for fun. A checking account with a debit card helps them practice everyday decisions. Our teen checking accounts have no monthly fees, offer digital banking, and include alerts for low balances or large purchases, which means teens can learn in a safe environment.
For bigger dreams, like saving for a car, senior trip, or college, create separate savings buckets and automate transfers on payday. Enjoying spending, whether for daily needs or for a dream your teen saved for, is also part of shaping a healthy financial future. Just like with other elements of our health, if our money habits are only about restrictions, discipline will be harder to maintain over time.
Q – What role should parents play in supporting teens’ financial independence without taking over?
Tansley Stearns / CEO & President of Community Financial Credit Union – I recommend parents be a coach, not a pilot. Start with clarity: agree on who covers what so there are fewer surprises. Try a quick family “money huddle” once a month, spend 15 minutes reviewing balances, looking ahead, and setting one small improvement. If your teen overspends, resist the urge to bail them out. Let natural consequences teach the lesson. Picking up an extra shift, scaling back their online shopping cart, or canceling a subscription will nurture even stronger decisions next time, especially if you talk about it openly.
And model what healthy money habits look like. Say out loud, “We’re comparing prices,” or “Let’s wait a week and see if it’s a want or a need.” Most of all, keep values at the center. Money is about more than things; it’s about saving for what matters, giving to causes you care about, enjoying life with money you’ve earned, and choosing wisely. With practice, our teens will gain both the confidence to feel secure and the courage to reach their dreams.
Tansley Stearns is the ceo and president of Community Financial Credit Union, a not-for-profit, full-service financial institution headquartered in Plymouth, Michigan. With 14 branches and growing in southeast and northern Michigan, over 350 employees and $1.5 billion in assets, Community Financial was named one of America’s Best Credit Unions by Forbes. To learn more, about Community Financials kids’ and teen accounts, and resources for parents, visit cfcu.org/kids-and-teens.
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For more info on Empowering Choice – How Teens Build Money Confidence, visit cfcu.org/kids-and-teens
