Sending your child off to college is a significant milestone, and for many parents, it’s the first time their teen will be managing money on their own. Talking about money is essential in every family, including Louann Millar’s, who is the leader of youth and student banking at Wells Fargo. Millar has two teenagers who approach money differently, highlighting the importance of discussing financial management with your kids.

Encouraging Open Conversations

Millar emphasizes the need for parents to have open conversations with their children about money, allowing them to understand how to prioritize their finances. The 2025 Wells Fargo Family Banking and Allowance Study found that 85% of parents feel they should have more conversations with their kids about money, but almost a third of parents feel uncomfortable doing so.

Managing money is a life skill that can be taught by sharing your own experiences and the lessons you’ve learned from your financial decisions. Encourage your child to ask questions, make their own decisions, and learn from both successes and setbacks. By modeling openness and a growth mindset, you’re helping them become money smart, even if you’re still learning yourself.

Choosing the Right Student Bank Account

When selecting a student bank account, consider factors such as transparency, control, and convenience. Look for an account with clear terms, practical tools, and built-in safeguards. You can also encourage your teen to load their debit card to their digital wallet, allowing them to pay for everyday expenses with their phone.

It’s essential to find a balance between giving your kids the freedom to manage their finances and providing the necessary support and guidance. Consider joint ownership or authorization, which enables you to monitor your teen’s bank account for fraudulent or suspicious transactions. Set up alerts to track deposits and low balances, helping your child stay on top of their money.

Avoiding Common Mistakes

First-time money managers are bound to encounter a few challenges, but with your guidance, they can build smart money habits and avoid common pitfalls. Some of the mistakes to watch out for include overspending, failure to plan, and responding to scams. Encourage your student to regularly check their accounts, create a basic spending plan, and be cautious when shopping online or applying for jobs.

Original reporting: KTVZ (Central Oregon) — read the source article.