6 Financial Literacy Activities for High School Students

You can start learning about personal finance at any age, but most people really start to worry about personal money management when they reach high school. That’s when students start to open checking accounts to handle paychecks from part-time jobs, start using credit cards, and open savings accounts to put money away for a car or for college. Unfortunately, too many teenagers have little or no grasp of the basics of money management, which is why schools and parents are creating more financial literacy activities for high school students.

High school is the perfect time to start teaching financial literacy. In fact, personal finance courses are required for high school students in 21 states. These courses cover basics such as saving, budgeting, credit scores, interest rates, borrowing money, and paying for college. 

Start with the Basics

Financial literacy isn’t something that comes naturally. Like most things, it needs to be taught, and the best way to start is with the basics.

The primary skill everyone should master is budgeting, including knowing how to balance income against expenses. This may seem to be less of a concern for teenagers because their only income may come from an allowance or a part-time job, and they might not have any necessary living expenses. But they should still understand how to create a personal budget.

Understanding basic banking tools such as checking accounts, savings accounts, and debit cards is also essential. Most people open their first bank accounts in their teens, which makes the teen years the ideal time to show them how to manage their money.

Managing credit is an especially valuable lesson. When they open a savings account or get their first credit card, high schoolers also need to understand the basics of compound interest.

Most students start their financial journey by opening a savings account. When they reach their teens, they should appreciate the benefits of saving and know how to save for both immediate goals such as college and long-term goals such as retirement.

Financial Literacy Activities for High School Students

You can help reinforce some of those personal money management lessons your children learn in school with activities that can help them better understand the realities of working with money. Some of these activities may seem simple, but they will lay the foundation for financial practices that will help high school students for the rest of their lives.

1. Open a checking and a savings account. The first step should be to get your high schooler used to managing their own money, starting with bank accounts. Any local bank or credit union makes it easy for first-time customers to get started. In fact, most financial institutions have youth accounts with terms structured specifically for students and teens. Having both types of accounts will help your high schooler set up a savings plan by regularly moving money from their checking into their savings account.
   
   
2. Give them a debit card. With the checking account comes a debit card, which will help teach your high schooler how to manage their day-to-day spending. A basic concept that many students have difficulty grasping is how debit cards are tied to their bank account, and that they can’t spend more money than they have in the account. A debit card will teach them to keep track of their money. You can also show them how to use online banking tools to help them keep track of their spending and their balance.
   
   
3. Give them a credit card. Many parents give their kids a credit card “for emergencies,” but that won’t help them learn how to build and manage their credit. They should have their own personal credit card so they can learn about rotating credit and how to manage their spending and payments. Student cards are available with lower spending limits so your teen can’t get into too much debt, or you might consider using a prepaid cash card to help them learn how to manage their spending.
   
   
4. Create a personal budget. Even if your high schooler has few or no expenses, they should understand how to create a budget. Walk them through common living expenses and help them set up a budget. You might consider having them budget for some of their own expenses, such as club fees, gasoline, or their mobile phone bill, even if you give them the allowance to cover those expenses.
   
   
5. Develop a savings plan. With the bank accounts in place, it’s time to develop a savings strategy. Show your high schooler how to set up an emergency fund (so they don’t have to use their emergency credit card) or how to start saving for college.
   
   
6. Start investing. To help your teen prepare for retirement, consider setting up a small investment portfolio. This will help teach them about stocks, bonds, and other types of investments while preparing them for retirement planning.

Your local credit union is a great source of financial literacy activities for high school students. iQ Credit Union, for example, has a series of financial education programs. We also have youth accounts and tools specifically designed to help students understand money management.

Our financial advisors are always available to answer questions and provide guidance. Part of our mission is to help our members find the right financial services for every stage of their life, and we want our members to start early.