This research by NAB not only challenges typical assumptions regarding teens and financial literacy but also underscores teens' growing interest in managing money. According to NAB personal banker Claudia Dior, today's youths, observing shifting economic conditions and learning from their family's budgeting practices, are eager to arm themselves with fundamental financial skills. Their digital skills play a significant role as they independently seek out financial knowledge, though Ms Dior emphasizes the importance of sourcing information from credible platforms.
The report also points out that more than 60% of high-schoolers believe they are equipped to create a budget, and 62% feel capable of setting financial goals. New trends have emerged, with youngsters initiating discussions on interest rates and long-term financial planning—a significant transformation from a decade ago.
For families, Ms Dior offers several strategies to enhance young people's financial agility. Encouraging the exploration of legitimate budgeting apps can aid teens in tracking expenditures, categorizing costs, and identifying spending habits. Additionally, she suggests involving teens in budget-related activities at home, such as planning meals, comparing prices, and exploring the value, thereby integrating practical math skills with financial stewardship.
She further recommends allowing children to witness the process of paying bills, explaining the dynamics between fixed and variable costs and showing how these align with household income—valuable insights that prepare them for future fiscal responsibilities.
