Summer is here!

For a lot of teens, that means summer jobs and earning a little extra money.

This season also provides parents with opportunities to teach some much-needed money skills.

How badly are these skills needed? Consider this: In a recent study, 92% of undergraduates used credit cards for education expenses such as tuition and textbooks. Additionally, almost 20% of college seniors carry credit card balances of more than $7,000. Add that to student loans, and graduates on average owe close to $30,000 in debt. As a result, more people are applying for personal bankruptcy at age 25 or younger.

Those are really scary statistics!

The “earn and spend” philosophy comes naturally to teens whose brains are not fully developed. And when they spend everything they earn, there's no cushion for when unexpected expenses come up, which happens even to young adults.

Setting goals and saving will offer much greater rewards as well as a valuable life lesson. Good savings habits learned early in life will help avoid poor spending habits later.

If you're a parent: Begin with helping your teen set a goal. It may be a purchase, a trip or simply a target amount of money to save by the end of summer. Determine how much money must be saved from each paycheck to meet the goal. Set reasonable goals so there’s still some pocket money left. Decide if you, as the parent, are willing to provide an incentive, such as a cash bonus when the goal is achieved.

Then, talk to your young adult about the benefits of compounding interest. Explain that when they save in an interest-earning account, the credit union contributes to help them reach their goals. (If they haven't already set up a savings account and a teen-friendly checking account with us, don't hesitate to bring them into CommonWealth One with you to do that!)

When summer ends, your child will have something to show for their efforts. In addition, they will have learned patience, discipline and appreciation for the effort it takes to pay for their heart’s desires.

Need some more advice for your growing kids? CommonWealth One is here for you with a ton of resources to help you — and your young adults — live your best financial lives!

In addition to free financial education resources available through our website at cofcu.org/resources/financial-education, we recommend checking out our free webinar, "Preparing Your Teen for Lift Off," on Thursday, May 30 at noon.