Healthy Financial Habits for Tweens

Help your tween build confidence and independence through smart money habits.

The age between childhood and young adulthood is a pivotal time for learning and growing, and comes with great opportunities to expand your child’s understanding of financial literacy. 

At this age, tweens:

• Understand the concept of money
• Begin managing small amounts through gifts, chores, or allowances
• Are ready to form habits that stick well into adulthood

Using an Allowance to Teach Savings Habits

Using an allowance as a tool to introduce money topics at an early age can help teach kids about money through real-life experiences, as well as further their understanding of savings, how money accumulates over time, budgeting, and financial responsibility.

Similarly, this may help your child to appreciate the importance of working to earn money, encouraging them to get a job earlier on in their life. By making and managing their own money, your tween will take an active role in their own finances, allowing them to watch their savings grow in real time and further develop healthy spending habits. 

The decision to pay kids an allowance is different for every family, and can be tailored to each family and their comfort levels with this concept. Often, an allowance is based on payment for completing household chores and duties, with amounts varying from a weekly wage based on age, to a set amount for each chore. A commonly used rule of thumb is to offer $1 per week for each year of the child’s age. For example, a 9 year old would receive $9 per week. 

Encourage Thoughtful Spending

Once your tween has started saving, teach them how to spend with purpose.

Try the following to get your tweens and teens to build thoughtful spending habits:

• Encourage them to plan purchases and compare options
• Help them set short-term goals, like saving for a game or toy
• Celebrate when they reach those goals with their own earned money
• Talk about needs vs. wants to develop good decision-making habits

Each of these can build:

• Confidence in handling money
• Emotional maturity through delayed gratification
• Awareness of trade-offs and financial choices

By doing so, they take a more active and attentive role in their spending, improve their decision making skills, and establish a sense of financial freedom. 

Goals for the Future

Allowing your tween to earn money and watch their savings grow can embolden them to set goals for themselves and their future. For example, the next time they pick out an item that they want at the store, point out the price and encourage them to work towards saving that amount of money. This will not only help to establish a sense of work ethic and working hard for the things you want, but will encourage healthy goal setting and budgeting practices. 

FAQs about Helping Your Tween Build Healthy Financial Habits

1. What age is the right time to open a bank account for my child?
   Every child is different, but many tweens are ready for a simple savings account around age 10–12, especially if they’re earning an allowance or receiving birthday or holiday money. If your child is interested in saving or spending more independently, it might be a good time to open an account through our Kids’ Bank program.
2. Should my child get an allowance, and how much should it be?
   That depends on your family’s approach, but a common guideline is $1 per week for each year of age. Some families tie allowances to chores, while others offer a set weekly amount.
3. How can I encourage my tween to save instead of spend? 
   Help your child set simple, short-term goals, like saving up for a toy or event. Show them how saving a little each week gets them closer. Watching their money grow and having a say in how it’s used builds confidence, patience, and long-term financial awareness.

Teaching Your Teen to Manage Money Responsibly with Piscataqua Savings Bank 

If your tween is at an age where they are outgrowing a piggy bank, and you wish to further their financial literacy skills, it may be time to join the Piscataqua Savings Bank Kids’ Bank program. To get your tween started on the path to financial success, visit us at 15 Pleasant Street in Portsmouth, NH or get started by opening a savings or checking account online on our website.