Budgeting for teens

Let’s be honest, teaching kids about money can feel intimidating.

It’s one of those “adulting” topics we know they need, but if we didn’t grow up with great financial habits ourselves, how can we pass on something we’re still figuring out?

That’s why I sat down with my friend Crystal Paine for a conversation every parent needs to hear. Crystal has three teens under her roof, so she’s right in the thick of it, and she’s been intentional about helping them learn the skills to thrive financially. (Spoiler alert: It’s not about lectures or complicated spreadsheets.)

We talked about the emotional side of money, the fear so many of us have about even looking at the numbers, and why your kids are already learning about money (even if you’ve never had a sit-down conversation).

This episode is packed with practical strategies and empowering encouragement, plus, Crystal shared a simple tool teens can use to start budgeting in under an hour. It’s so doable, I wish I’d had this when I was a teen!

Here’s what you’ll take away from our conversation:

  • Why budgeting is essential for teens and not just for adults with mortgages
  • How emotional language can help kids (and parents!) process money stress
  • The exact age Crystal recommends starting money conversations
  • One simple phrase that opens the door to healthier financial habits
  • What to say if you didn’t grow up learning how to manage money
  • How to model smart financial decisions—even when you make mistakes
  • A tool that empowers teens to track their money in just one hour
  • And the #1 reason kids need open conversations about money (hint: it’s not about the math)

You don’t have to be a financial whiz to raise financially savvy kids.

You just need to be willing to have the conversation, and this episode is the perfect place to start.

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Can’t see the video? Watch Budgeting for Teens here on YouTube!

No time for the video? Here are the notes!

Starting Money Conversations With Teens

  • 1:31: Today, I’m talking to Crystal Paine of Money Saving Mom. She has a new product, One Hour Budget for Teens, which you can get for $19 if you use this link and the code “lifeskills”.
  • 3:13: Crystal has been teaching moms on how to save money, time management, special needs parenting, and a slew of other topics for years. She shares what drew her to teen budgeting in this season.
  • 6:55: What’s the most important money lesson to teach our kids? Crystal says teaching teens that money is a tool. The ultimate goal is that we want to be conduits and see money as a way we can bless people. This means being intentional with our finances.

It’s not just “let’s be really wise with our money so we can have a lot of money,” but “let’s be wise with our money so that we can give more generously.” -Crystal Paine

Chemicals in Pajamas?

Kids spend about half their time in bed and pajamas. Most kids PJs are laced with toxic flame-retardant chemicals or made with fabrics that will melt when exposed to flames and we say “No thank you!” to those in our house!

kimball family in non-toxic jammies

It’s tricky to find non-toxic pajamas, but I’ve got you covered! Some of our favorite brands of non-toxic PJs:

Read more about why to choose organic, non-toxic pajamas.

  • 9:19: Sometimes parents are making good financial decisions, but they don’t let their kids see what choices they’re making, so it doesn’t have as big of an impact on the kids. You need to teach them by modeling for them and letting them see what you’re doing. Here’s the study Crystal mentions.

When to Start Teaching Kids About Money

  • 10:21: Crystal shares some of the mistakes she thinks she made with her older kids and how she’s changing that with her younger kids. Start talking about money with kids early. Show them what money looks like, give them opportunities to earn money, and let them spend their money (and go up to the register to pay themselves!).
  • 13:57: Money causes a lot of stress, but it’s usually a sign of something deeper. Many people don’t know how to identify their emotions and find the root of the issue. For example, someone may have experienced lack in their childhood and now, as an adult, they’re trying to fill the void by buying lots of things and feel stressed about money. Teach your kids to name their emotions and get to the root.
  • 16:17: Hopefully, by teaching our kids about money and budgeting at a younger age, we can help them avoid some of the financial confusion and stress many adults face today.

We want teens to be so excited about what they can do if they're smart and intentional with their money. -Crystal Paine

Teaching Teens About Money When You’re Nervous

  • 20:49: Lots of parents are nervous about teaching their kids about money because they feel like they don’t know what they’re doing as well as they should. If this is you, think about what you wish your parents had taught you, what example you wish your parents had set? Start there, don’t let your fear and negative beliefs hold you back from teaching your teens about money.
  • 22:29: Be honest with your kids about your finances, share when you make mistakes, or what you’re doing to make ends meet when things are tight. Obviously, you don’t need to share every little detail, and if you have sensitive children, you don’t need to scare them by saying money is really tight, but let money be an open conversation in your home. Make it fun, see how little you can spend, and work as a team to save for something, or pay off debt.
  • 23:33: If you’re struggling financially, approach it from the context of, we want to do better, because we want to set you guys up for the future in a better way. We want to set a better example for you, and so this is something that we’re learning, and we’d love for you to come alongside us as we learn.
  • 25:31: Crystal’s parents set an example of living below their means and being intentional with their spending so that they could be generous. They would say they didn’t ever want anyone to be envious of them because they had really fancy possessions.

I would think, “I’m going to see how well we can live on how little,” instead of “we hardly have any money, what are we going to do?” and just switching around how we approach things. It was so much fun for me. -Crystal Paine

Kids don’t need plastic knives. They need real skills.

Teach safe technique, focus, and confidence in the all-time fav lesson from our kids cooking class! (ages 2-12)






Or find out more about the free knife class here.

Are Budgets Necessary?

  • 28:52: People say they can’t have a budget because they don’t make enough money, but you’re always going to be better off if you try to stick to a budget versus hoping it all works out.
  • 31:08: Crystal shares more details about her One Hour Budget for Teens. In January, they launched One Hour Budget, which is for adults, and then created a teen version. It’s exactly what it sounds like: it walks you through how to set up a budget in an hour. There are several bonuses as well, which help you as a parent approach your teens about money management. Here are links to the 15 skills for teens and 10 side hustles for teens.
  • 35:20: Let’s get three quick grocery saving hacks. 1. Start with a budget. How will you know if you’re saving money if you don’t have a budget? Have a hard time sticking to it? Use cash only. 2. Look at the unit price. They do the math for you right on the shelf to see the cheapest option. 3. Try to cut your budget by 1-3% each month. Many people want to overhaul their budget overnight, but that just isn’t sustainable and can be very difficult and discouraging.
  • 39:27: We end with a quick win you can take action on today. Start the conversation. Ask them questions like, “Do you know what credit cards are?” Gauge where they are when it comes to financial literacy.

Have conversations, ask curious questions, and in your everyday life, be intentional with how you're using money. -Crystal Paine

Resources We Mentioned for Money Management for Teens

Crystal PaineCrystal Paine is a mom of six, New York Times bestselling author, host of The Crystal Paine Show, and founder of Money Saving Mom. Her passion is to help people save money, learn to budget, and simplify their lives. She loves good books, experimenting in the kitchen, getting great deals at the grocery store, and hanging out with family and friends. She lives with her husband and kids in the Nashville, Tennessee, area.