Financial parenting for teens is closer to on-the-job training. Teens prefer to learn by doing, and want advice and guidance when it's relevant. Think about this stage of financial parenting in terms of saving, deciding, and planning.
With more money in her pocket, your teen can dust off the concept of paying herself first—saving for a goal. It'll be a challenge, with real-world temptations and teenage expenses. You'll want to help your teen.
Keep it real. Give your teen a longer leash, so he can make both good and not-so-good decisions. Then use a simple budget worksheet to put things in black and white. You'll have hard information for a good set of discussions, whether it turns out your teen is a saver, a spender, or an overspender.
Give credit. Depending on your teen's maturity and responsibility, a co-signed credit card can give your teen an adult financial tool under your supervision and guidance, imparting key lessons about the cost of credit and making timely payments.
It's all timing. Use milestones such as a job, college planning, or even starting a small business as learning opportunities. Explain your teen's pay stub. Guide your teen through the college loan process and discuss the different methods you'll both rely on to fund higher education.
For more information, see Consumer Financial Protection Bureau’s (CFPB): For children during young adulthood.