Seeing your teen near adulthood can give you a sense of joy and concern—both exciting milestones and potential mistakes await.

So before they head to college or a new opportunity, provide a few lessons in financial education that can prepare them for a sound future:

Open an account

A high-yield savings account through AAA Banking offers access to interest rates that’ll grow their money faster.

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The first step toward money management for teens: Teach them about money by giving them a checking or savings account with money to manage. Help set it up, demonstrate how to use an ATM, explain how to write a check—a skill some young people don’t have—and show how to monitor the balance and conduct transactions online or with a banking app.

Set a budget

Help your children understand the flow of their money and how to control that flow. Work with them to create a basic budget so they know how much money they have and what their expenses are (or will be).

List income (or an allowance) and expenses—food, insurance, rent, tuition, books, phone, entertainment, etc. And remember this money management for teens tip: Their financial aid may have to stretch over a whole semester in college, so budgeting is critical.

Help establish credit

Good credit is essential throughout life (think renting an apartment, getting a home loan, buying a car), so establishing a good credit history early is an important step. Start by adding them as an authorized user on your credit card so you can teach them how to monitor the bill and manage the payments.

Check their credit report

Encourage them to regularly check their credit report. It’ll help them understand how financial decisions affect their credit score and may warn them if they are a victim of identity theft. Guard their online identity with ProtectMyID, through your Platinum-level coverage or their own coverage.

Help Your Teen Establish Good Credit

With the AAA Dollars Mastercard credit card—exclusive to members—you can earn cash-back rewards and AAA Dollars, too.

The creditor and issuer of the AAA Dollars Mastercard is U.S. Bank NA dba ACG Card Services, pursuant to a license from Mastercard International Incorporated. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated. ACG Card Services is an Equal Credit Opportunity Lender.

High-Yield Savings accounts offered by Auto Club Trust, FSB. Equal Credit Opportunity Lender. Other restrictions may apply. All rights reserved. Member FDIC

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