5 Money Lessons Every Teen Needs Before College

In partnership with

Could you afford $3,500 to remove a chew toy?

From $3,500 to remove a chew toy, to $7,000 for a hip replacement, keeping your pets healthy is getting more and more expensive. Fortunately, pet insurance can help offset these rising costs. Pet insurance can cover eligible accidents and illnesses with up to 90% reimbursement. Get your buddy covered today with plans starting at just $10 a month.

PROTECT YOUR PET

You can teach your teen how to drive, how to do laundry, even how to make their own grilled cheese.

But if they leave for college without understanding how money really works—they’re walking into one of the most expensive chapters of life without a map.

And trust me, no one at orientation is handing out “how not to blow your refund check” pamphlets.

Whether your teen is headed to a dorm, a trade program, or staying local, here are five must-know money lessons that’ll help them make smarter choices, avoid costly mistakes, and build confidence before the bills start showing up.

💳 1. Credit Cards Aren’t Free Money

Here’s the truth: credit card companies love targeting college students. Easy approvals, flashy offers, zero understanding of compound interest. It's a trap—and a costly one.

Teach them this:

• Interest adds up fast. $500 on a card can balloon into $900 if they just make minimum payments.

• Credit can be useful—but only if used intentionally and paid off monthly.

• They should never swipe for something they wouldn’t buy in cash.

✅ Money Dad tip: Add your teen as an authorized user on your card to help build credit safely before they get their own.

💰 2. Know the Difference Between “Wants” and “Needs”

College is full of spending temptation: DoorDash dinners, concerts, new clothes, new gadgets, late-night vending machines...

And without a basic framework, it’s easy for “fun money” to eat up food money.

Teach them this:

• Needs: Rent, books, basic groceries, toiletries.

• Wants: That $9 latte, extra hoodies, delivery, Spotify Premium.

They’re not the fun police—it’s about awareness. If they know their categories, they can make trade-offs without going broke.

✅ Money Dad tip: Show them how to set up a simple 50/30/20 budget (Needs/Wants/Saving). Simple, flexible, and empowering.

🧾 3. Student Loans Are Not Monopoly Money

Here’s what no one tells teens: the loan money hits their account, it feels like a gift—and 18-year-olds are signing up for 10+ years of payments they barely understand.

Teach them this:

• Loans = real debt. With interest.

• Know the difference between subsidized vs. unsubsidized loans.

• Only borrow what they truly need—not the maximum just because it’s offered.

Better to eat canned chili than sign up for an extra $3,000 in debt to fund Uber Eats and pizza nights.

✅ Money Dad tip: Walk through a student loan calculator together. Show them what that $25k will cost monthly after graduation. Let the numbers do the talking.

🧠 4. Budgeting = Freedom, Not Restriction

Budgeting isn’t about saying no to fun. It’s about making informed choices and keeping them in control.

Teach them this:

• A budget isn’t fixed—it’s a flexible plan.

• Track money weekly, not monthly. Smaller windows = better awareness.

• Use an app like Mint, YNAB, or even a Google Sheet to stay in control.

✅ Money Dad tip: Sit down and build their first real budget together. Include tuition, books, food, fun money, and savings. You’re not doing it for them—you’re teaching them how to think about it.

🏦 5. Start Building Good Money Habits Early

It’s not about having a six-figure income at 18. It’s about creating habits that will serve them for life.

Teach them this:

• Pay yourself first: save 10% of every paycheck.

• Automate savings—even $10/week makes a difference.

• Don’t let lifestyle creep steal every dollar they earn.

✅ Money Dad tip: Open a Roth IRA if your teen has earned income. A $1,000 contribution now could grow to $10,000+ by retirement. That’s real compounding.

🎓 Final Thoughts: Launch Them With Confidence, Not Confusion

College (or any post-high school path) is one of the most financially vulnerable seasons of life.

But a teen who understands how to manage money, track it, protect their credit, and avoid lifestyle traps is miles ahead of their peers.

You don’t have to teach them everything overnight. Just start the conversation. Share your own wins—and your money mistakes. Keep the door open, judgment low, and expectations clear.

They’ll remember it. And one day, they’ll thank you.

Even if it’s not until they’re 30 and explaining it to their kids.

—

Let’s raise the next generation of financially wise adults—one kid at a time.

—Kevin
The Money Dad

We’re excited to announce The Money Dad Referral Program! Share your unique link with friends and family, and earn exclusive rewards like our Creative Tax Strategies for W2 Employees guide, coaching calls, and more as a thank-you for helping grow our community.