A teenage boy shops in a clothing store and checks a budgeting app on his phone.Fly View Productions/iStockPhoto / Getty Images
As parents, we play a key role in our kids’ future financial health.
The good news is that you don’t have to be a financial whiz to help them – you just need to expose them to simple concepts and talk about money regularly. Here are three ways to do that.
Get them used to banking
Kids should have their own bank account, starting as young as age 10. This gives them a place to put their birthday money and any cash they earn doing chores or working. Take your child to a bank branch and let them do some of the talking. Have them explain that they want a bank account, and encourage the bank employee to talk to them, and not just to you.
When they get a bit older and are earning some money, they should have two accounts: one for day-to-day banking and one for savings. While the regular account will have a debit card attached to it, the savings account will allow them to get into the habit of putting a portion of their money away for bigger purchases. You can find some good options geared specifically to kids and students, with unlimited transactions and no fees.
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Kids should be checking their bank accounts regularly. Seeing the balance and reviewing the transactions will force them to see how they are spending their money. It also helps them identify fraudulent transactions. Both my kids have had this problem – in one case, my son lost his debit card and someone used it, and my other son had his Uber account hacked.
If this happens to your kids, help them find the customer-service number for their bank, and have them make the call. You should be there to supervise the conversation, but this will help them get comfortable talking to bank employees, a skill they will need later on.
Talk about how much things cost
Talking about money is taboo among many Canadians, and this is a shame. By keeping your finances a secret from your kids, they are missing valuable information about how much life costs. Once they leave the comfortable nest of parental financial support, they can easily get into trouble by over-spending.
Talk openly about how much you earn, how much your mortgage or rent payment is, what groceries cost you each month, and whether you are able to save for retirement. Make it age-appropriate, of course, since younger teens might not be ready for the nitty-gritty.
Having a conversation about how much their postsecondary no education will cost is an excellent jumping off point since it’s something that affects them directly. Build a plan together for how you’ll cover this expense, and give them a target to work toward in terms of building their savings to contribute.
In our house, the kids are responsible for their discretionary spending while away at school, and they know that the more they save over the summer, the more Uber Eats they can afford during exams.
This knowledge sets the foundation for cash-flow planning or budgeting, figuring out how to live within your means, and regularly setting aside money for savings.
Open a TFSA
If your teenager is turning 18 this year, give them the best gift ever: a tax-free savings account. Go online and guide them through the process of opening a TFSA. Then, get them started by giving them their first contribution.
For teenagers, the benefit of having a TFSA isn’t so much about the tax savings – it’s much more about exposure to financial products and developing a savings and investing habit.
The best place to open their TFSA is with an online broker where they can access low-cost investments. Every bank has an online brokerage, and many have commission-free trading in exchange-traded funds (ETFs).
You could also go with a non-bank brokerage like Wealthsimple or Questrade. In my experience, Wealthsimple is a great place to start because of the simplicity of their platform.
But don’t stop there. Have them invest in the stock market. While they might need to keep some funds in a safe investment for near-term use, they should have a portion put away in long-term savings. This can be invested in ETFs. An easy investment is an all-in-one fund like the BMO All-Equity ETF or a similar product.
Have them look at their account every few months and see how the value has changed. And if they earn money, encourage them to automatically transfer $50 a paycheque and invest it. Not only are they starting their savings early – which has huge benefits – but they will talk about it with their friends, which will spread the word and help more kids gain money smarts.
Make 2026 a great year for your kids’ financial education. It’s the gift that keeps on giving.
Anita Bruinsma is a Toronto-based certified financial planner and a parent of two teenage boys. You can find her at Clarity Personal Finance.