How Do I Teach My Teen About Money?
Written by Julie Diamond, Founder & CEO Diamond Teachers Group
Teaching your teen about wealth management can feel daunting, especially when Canada’s economy is in a period of stabilization and restructuring. It is the perfect time to move from "survival mode" to strategic wealth education.
Step 1: The One-Week Spending Audit
Financial awareness begins with visibility. Ask your teen to track every loonie and toonie they spend for exactly one week.
Why it works: Teens often underestimate small, frequent digital transactions (like in-game microtransactions or subscriptions).
The Tools: Use a simple spreadsheet or an app like Mydoh to track your child’s spending in real-time. I came across this app recently and, while I haven’t used it myself, I’ve heard great things about it!
The Goal: At the end of the week, review the transactions together without judgment. Knowledge is the first step to control.
Step 2: Mastering Needs, Wants, and Savings
In 2026, grocery prices remain a major pressure point, rising 4+% year-over-year. This reality makes the distinction between "needs" and "wants" more tangible than ever.
Needs: Essential expenses like phone plans, transit, or school supplies.
Wants: Entertainment, dining out, or the latest tech.
Savings: The "Pay Yourself First" rule. Suggest they take 10% to 15% off the top of any allowance or part-time job earnings before spending anything else.
Step 3: Transparency in Household Budgeting
Don't keep the "cost of life" a secret. Involve your teen in the household budget, starting with weekly grocery shopping.
Grocery Challenge: Give them a set budget for the weekly grocery list. Let them compare prices, hunt for sales, and choose between name brands and store brands.
Real Talk: Openly discuss how much rent, mortgage, and utilities actually cost. This prevents "sticker shock" when they eventually move out.
Step 4: Set a Personal Money Goal
Saving is easier when there is a "why." Encourage them to set a SMART goal (Specific, Measurable, Attainable, Realistic, Time-framed) for their money. See my blog last week on how to set and structure a SMART goal. It’s important to let them set this goal so they’re motivated to save.
Visual Motivation: Whether it’s a new phone, concert tickets, or their first car, having a concrete target helps them resist impulse buys.
Matching: Consider a "savings matching plan" where you contribute a percentage for every dollar they save, mirroring a corporate RRSP match.
Step 5: Start at Any Age: "Chores and Scores"
You don't need to wait until they are 16 to start. In our house, we've introduced Chores and Scores for my 9-year-old stepson.
The System: He performs chores with specific monetary values (paid in Monopoly money) to learn the link between work and reward.
The Rewards: He co-created a list of "scores" (rewards) he can buy from a night out at the movies, which is a higher-ticket item, to getting an extra after-dinner snack.
The Proof: He has gotten excited about saving and budgeting for higher-priced experiences. It’s also sparked conversations together about pricing and why some things are more expensive than others.
Seeing him weigh the "cost" of the hard work against the value of the reward is proof that financial literacy can, and should, begin early.
By starting these conversations now, you aren't just teaching them to manage money; you're giving them the resilience to thrive in any economic climate.
Disclaimer: This blog provides general financial education and should not be considered professional financial advice.