Sending a 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. Louann Millar, leader of youth and student banking at Wells Fargo, emphasizes the importance of talking about money with her teenagers. Millar has two teenagers who approach money differently, with one being eager to earn and save, while the other lives in the moment and struggles with thinking about future purchases.

Encouraging Open Conversations

Millar stresses that having open conversations about money is essential, allowing children to understand how their family prioritizes 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. Millar suggests that parents don’t need to be financial experts to have meaningful conversations with their teens.

Managing money is a life skill that can be taught by sharing experiences and lessons learned. Parents can encourage their children to ask questions, make their own decisions, and learn from successes and setbacks. By modeling openness and a growth mindset, parents can help their children become money smart, even if they’re still learning themselves.

Choosing the Right Student Bank Account

Millar recommends that parents shop around for a student bank account that offers transparency, control, and convenience. When selecting an account, parents should look for features such as clear terms, practical tools, and built-in safeguards. They should also consider the level of oversight they want to have, such as visibility into spending and balances.

Parents can help their children set up automatic payments for loans or rent and introduce them to savings opportunities. They should also discuss the importance of checking account balances and transactions regularly and set up alerts to track deposits and low balances.

Avoiding Common Mistakes

First-time money managers are bound to make mistakes, but parents can help them avoid common pitfalls. These include overspending, failure to plan, and responding to scams. Parents can encourage their children to regularly check their accounts, create a basic spending plan, and be cautious when responding to suspicious emails or messages.

Original reporting: El Paso News (HLL/CB) — read the source article.