Financial Literacy Skills for Young People
Financial literacy for young people means understanding how money works and learning how to make wise choices. It helps them learn how to manage money, save wisely, and plan for the future. Youth workers can play a role in teaching these life-changing skills.
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Why financial literacy matters for young people
Learning how to manage money isn’t just for adults. Ideally, it starts at a young age. When young people learn about money early, they build healthy financial habits that can last a lifetime. They understand how to save, budget, and make better choices. And this gives them confidence and better control over their future.
Youth workers, teachers, mentors, afterschool leaders, and families can help make this learning fun and meaningful. These lessons could be part of afterschool programs, camps, or even short conversations.
What every young person should know about money
There are a few basic skills that can make a big difference. Even if someone doesn’t have much money now, learning how to handle what they do have is a great place to start.
Here are some important money skills you can teach young people:
- Saving money: Setting some money aside for later instead of spending it all at once.
- Budgeting: Planning how much to spend and how much to save.
- Needs vs. wants: Realizing the difference helps with smarter spending.
- Spending wisely: Thinking before buying and checking prices.
- Earning money: Learning how chores, jobs, or business ideas can bring in income.
- Giving back: Choosing to donate or help others with their money shows kindness.
How youth workers can teach money lessons
You don’t need to be a money expert to teach basic financial literacy to young people. Youth workers can use real-life situations, group games, and simple tools to guide young people in growing these important skills.
Try these ideas to get started:
- Use real-life examples: Talk about planning for an event like a class trip or birthday party.
- Ask questions: Let young people think through money choices, like “What would you do with $10?”
- Play money games: Games like “Money Bingo,” pretend stores, or saving contests can make learning fun.
- Set savings goals: Help young people write down something they want and create a plan to reach it.
- Celebrate small wins: Celebrate when a young person saves money, helps a friend, or makes a smart choice.
Teaching about money doesn’t have to take a lot of time. Even five minutes a week can help make a difference. When young people hear the same messages often, the lessons start to stick. By including money lessons in everyday activities, youth workers help young people learn without pressure.
These lessons may start small, like saving coins in a jar. But they can grow into big skills that help with long-term plans like college, jobs, and future dreams. Every little lesson adds up to a brighter financial future!
Want to go a step further? Check out YIPA’s online training for youth workers called Helping Young People Maintain Employment. It’s a great way to learn how to support young people in keeping their jobs, building long-term success in the workplace, and creating a stable financial future.
About the author
Yedidya Erque is the operations associate of the Youth Intervention Programs Association (YIPA), a non-profit association of youth-serving organizations. We're your source for exceptional, affordable, personal and professional online learning via The Professional Youth Worker. Join us!
To ask Yedidya a question or share your feedback about this blog, email yedidya@yipa.org.
