Teach kids this financial literacy advice and they’ll be ready for a bright future

Photo above by Towfiqu barbhuiya on Unsplash.

Many high school students will spend the summer months working. Summer jobs offer us experience and a paycheck, and they also offer young people a chance to begin building a vital skill: managing money. 

The good news? Teens and young adults have the biggest financial advantage of all: time. While many adults wish they had started saving or investing earlier, your child has something they don’t: decades ahead of them to let money grow. And thanks to the power of compounding interest, even small amounts invested early can turn into something huge.

Here’s a classic example to show just how powerful this is:

Would you rather have $1 million today or a penny that doubles everyday for 30 days?

At first glance, the million dollars seems like the obvious choice. But if you chose the penny, you’d end up with over $5.3 million by day 30! That’s the power of compounding interest (and the power of thinking long-term). Check out this great article to see the full breakdown about compounding interest.

So if starting early makes such a difference, why aren’t we talking about financial literacy more?

Many people assume it’s something to worry about “later.” But waiting too long means missing out on key opportunities, making costly mistakes, and struggling with money down the line. In reality, financial education is about the freedom to make choices that align with our goals, whether that’s going to college, starting a business, or traveling the world.

My own passion for finance started in sixth grade with a simple stock simulator; it felt like a game with real-world impact. As I grew older, I saw close family friends face financial struggles — not due to lack of effort, but lack of early education. That inspired me to start Everest, a student-led organization working to make financial literacy engaging, accessible, and relevant for youth.

In this article, I’ll share what your teen should know about personal finance, why it matters, and how families in the Pittsburgh area can take the first steps together.

Getting Started: What Teens Should Know About Money

Your teen doesn’t need to be a Wall Street investor or a personal finance expert. All they need is a smart approach and a commitment to consistency. Here are a few steps to begin:

1. Learn the Basics: Understanding key financial concepts will help them make informed decisions down the line. This includes budgeting (the 50/30/20 rule is a great place to start), saving and investing (the earlier you start saving and investing, the more money will grow over time), credit and debt (learning how credit scores work, how to use a credit card responsibly, and how to avoid bad debt), and starting small.

When it comes to saving and investing, many people don’t realize that they don’t need thousands of dollars to begin. Even saving a few dollars a week is a great habit. 

If your child is interested in investing but isn’t ready to put in real money, try a stock market simulator like Investopedia or MarketWatch. This lets them practice buying and selling stocks without real financial risk.

Also, encourage them to think long-term. The stock market fluctuates daily, but historically it has always increased over time. The key is to buy low, hold onto investments and avoid panicking over short-term losses.

2. Reframe Your Money Mindset:  Many people grow up seeing money as stressful, something to constantly worry about. Instead, let your child see money as a tool that helps them achieve their goals. Let it work for them, not the other way around! The earlier teens adopt this mindset, the more confident they’ll feel about making financial decisions. One of the biggest advantages of financial literacy is that it unlocks new options. Whether they want to start a business, buy a car, or even retire early, financial education makes those dreams possible.

Pittsburgh-Based Financial Literacy Resources

If you’re looking for ways to learn more about financial literacy in the Pittsburgh area, here are some great places to start:

• Everest – My student-led initiative offering free resources, including the Investing for Teens book, a crash-course YouTube series, the Base Camp Brief newsletter for easy-to-read updates in the world of finance, and Everest Chapters across the U.S.
• Troutwood – A Pittsburgh-based company dedicated to making financial literacy accessible. They provide interactive financial planning tools and resources to help people make smart money choices.

Final Thoughts: Your summer challenge

As the school year ends, here’s an easy challenge to help you and your child start:

1. Track spending for one week: Encourage your teen to write down everything they buy and make note of where their money goes.
2. Set a savings goal: Whether it’s $5, $50, or more, challenge them to start putting money aside.
3. Learn one new financial concept each month: Read about credit scores, investing or budgeting. (whatever interests them most!)

By taking these small steps now, you’re setting your child up for a future where they control their money, not the other way around.

If you’re interested in learning more or getting involved in financial literacy initiatives, check out Everest’s free resources at https://www.nextgenfin.org/.