Back-to-School Season Is a Great Time to Talk to Teens About Money

A truly special evening for local students and families experiencing homelessness or financial hardship took place on August 4 in Corona. The night helped 75 children head back to school feeling confident, encouraged, and supported.

Safeguard clients were generous in donating school supplies to set these students up for success. That night, each student received a brand-new backpack filled with school supplies, enjoyed dinner from the In-N-Out truck, cooled off with Kona Ice, and personalized their backpack with patches and keychains to make it uniquely their own.

Thank you for helping us live out what Safeguard Cares is all about. We are incredibly grateful for your kindness. That night 100 families found out that people do care for one another.

The evening triggered another idea for a caring gift you can share with your own family.

A Gift You Can Give Your Teens Going Back To School

As students head back to high school and college this fall, you parents and grandparents are busy shopping for supplies, helping them move into dorms, and adjusting to new routines.

But one important back-to-school conversation with teens often gets overlooked: money.

Teens today are part of what is known as Gen Z. This generation consists of the first true “digital natives,” having never known a world without smartphones, social media, and on-demand internet access.

Comedian and writer Amy Poehler broke down how each generation relates to money. Straight to the point, she says, “The Boomers are all about money. Gen X is like IS it all about money? Millennials are like where IS the money? And Gen-Z is like what is money?”

As the father of three members of Ge Z, I know talking about money can feel daunting. But if you break it down into actionable habits, you can encourage them to build lifelong skills.

Whether your teen is earning their first paycheck, managing a debit card, or living away from home for the first time, these early financial experiences can shape lifelong habits. The good news? You don’t have to be a financial expert to help them build a strong foundation.

Here is how to guide them through the essentials of personal finance, budgeting, and managing milestone moments, such as their first paycheck.

Start by making money a regular topic of conversation, not an annual lecture. Ask questions about their spending goals, encourage them to think before making purchases, and explain how budgeting helps people prioritize what matters most. When teens understand where their money goes, they’re more likely to make thoughtful decisions.

Start a savings habit. Teach them the Golden Rule of financial planning, to pay themselves first. The moment a paycheck hits their account, at least 10% to 20% should automatically sweep into a savings account before they have the chance to spend it. Setting up automatic transfers into a savings account can make saving effortless while helping them prepare for unexpected expenses or future goals.

Discuss financial responsibilities with college students. From textbooks and meal plans to entertainment and transportation, expenses can add up quickly. Creating a monthly spending plan helps students avoid running out of money before the end of the month. Free budgeting apps or even a basic spreadsheet can help them track spending and identify areas where they can cut back.

Decode the first paycheck. If your student has a part-time job, their first paycheck is a perfect teaching opportunity. Sit down with them and explain the gap between gross pay and net pay. Many young workers are surprised to see deductions for taxes, Social Security, and Medicare. Walk through the pay stub together so they understand the difference between gross pay and take-home pay. It’s also a great time to discuss saving before spending.

Realize that credit cards also deserve an honest conversation. While credit can be a useful financial tool, it’s important to explain that borrowed money must be repaid. Encourage students to charge only what they can afford to pay off in full each month. Building good credit starts with responsible habits, not carrying a balance.

Don’t forget to discuss digital safety as well. Young adults are frequent targets for scams, phishing emails, and fraudulent text messages. Remind students to protect their passwords, avoid sharing personal information, and verify requests before sending money or clicking unfamiliar links.

Emphasize that financial mistakes are part of learning. Overspending once, forgetting to budget, or making an impulse purchase doesn’t define a person’s financial future. The key is to learn from those experiences and make better choices next time.

The Gift That Keeps Giving

Back-to-school season is an ideal time to prepare them for success in life. By having open, ongoing conversations about budgeting, saving, responsible spending, and smart financial decisions, parents can help young adults develop confidence with money that will benefit them long after graduation.

The transition back to school is usually marked by the rush for textbooks, dorm decor, and new schedules. However, it is also the prime opportunity to hand your high schoolers and college students the most valuable tool they can carry into adulthood: strong financial literacy.