Pocket Money to Pay cheques: How Teens Can Start Building Money Skills
Teach the basics of saving and smart spending.
Why Money Skills Matter Early
Learning how to manage money is one of the most important life skills — but for many teens, it’s a skill that doesn’t get taught until much later (if at all!).
Starting early, even with just pocket money or a small part-time job, can help teenagers build habits that will stick for life. The good news? It’s easier to start when the amounts are small.
1. Learn to Track Your Money
The first step is knowing what’s coming in and where it’s going.
Keep a simple list or use an app to track pocket money or pay from a casual job.
Separate “needs” (like transport or school items) from “wants” (clothes, gaming, eating out).
Why it matters: Awareness of spending habits is the foundation of financial confidence.
2. Save Before You Spend
Instead of waiting to see what’s left at the end of the week, flip the script:
Put a small portion (even 10–20%) of pocket money or pay into savings first.
Set a simple goal — like saving for a new phone, car, or holiday.
Pro Tip: Create a separate savings account to avoid the temptation of dipping in.
3. The 3-Account System
Even with small amounts, a simple system works:
Spend: For day-to-day fun or small buys.
Save: For bigger goals (e.g., tech, car).
Give: (Optional) A small portion for charity or causes they care about.
This teaches balance and values early on.
4. Make Smart Spending Choices
Before buying, ask: “Do I really want this, or will I regret it next week?”
Encourage waiting 24 hours on impulse buys. It’s a simple habit that can prevent a lot of “wish I didn’t” moments.
5. Start Learning About Earning
Part-time jobs, babysitting, or even a mini side hustle (like dog walking or tutoring) can give teens a sense of independence.
Lesson: When they work for their money, they naturally start thinking about its value — and how to use it wisely.
Key Takeaway:
Pocket money and first paychecks are more than just “extra cash.” They’re opportunities to build confidence, set goals, and develop a healthy relationship with money.
Want More Support?
Our Budgeting Basics course is a great starting point for parents and teens who want to learn how to save, spend, and plan — with simple steps and easy-to-use templates.
