We know the best moms get the heebie-jeebies even thinking of having money talks with their teens. It doesn’t help that we are still figuring out things ourselves. But the last thing you want is to raise a young adult who thinks it is okay to blow their entire paycheck on DoorDash takeout or designer clothes.

Today’s teenagers are running head-on into tough adulthood with one of the highest costs of living. It pays to teach them how to become money-savvy now before reality sets in. That’s especially true given that almost half of American parents shell out a little shy of $1,500 a month to tide their adult children over.

You don’t need an MBA to raise a money-smart kid. You just need to start talking about real money stuff now, while they still live under your roof and might actually listen.

These eight tips will help your teen build smart money habits that stick around long after they move out.

1. Give your teen real responsibility with money

Nothing beats giving an allowance to instill responsibility in your kid. It makes them feel great about doing chores and can be a good way to teach them about the hard side of earning their keep.

Sometimes teens don’t respond well to an allowance. That’s where giving them a commission can come in especially handy. Ask Dave Ramsey, and they will tell you it goes at least one leg up on an allowance since you’re rewarding the amount of effort rather than just doing a chore. Every chore has its price, quite like how working the grill at McDonald’s doesn’t pay as much as a doctor’s take-home.

2. Encourage your teen to start a business or do side gigs

It’s time your child levels up from their lemonade stand. Help your teen think about what they’re good at and how they can make money from it. If they can’t get enough of dogs, nudge them toward starting a neighborhood pet-sitting service.

If they become the next Elon Musk or Warren Buffett, all fine and dandy. But that’s not the goal here. We are talking about showing your teenager they can earn their keep instead of waiting for mommy or daddy to hand everything to them. Of course, the best lesson they will learn here is how to keep tabs on their own income and expenses. You know, the cornerstone of running a business.

3. Introduce them to debt control and credit building ASAP

This one makes a lot of parents nervous, but hear me out. You want your teen to understand how credit works before they get bombarded with credit card offers in college. Start small and safe.

You can give your teen a $20 ‘soft loan’ for something they want. If they don’t pay it back by the agreed date, charge them $2 interest. Watch how quickly they understand that borrowed money isn’t free money. You can also create a simple budget together.

4. Get your teenager interested in investing

Don’t worry, you’re not teaching them to day-trade crypto. Start with the basics of saving and watching the money grow over time. Open a savings account together and let them see how even small deposits add up.

If they’re ready for the next step, help them buy a few shares of stock in a company they know and like. Think Disney, Sony, or Nike. The point is to show them that money can work for them.

5. Make a habit of talking about money as a family

Money shouldn’t be this mysterious, scary topic that is whispered about behind closed doors. Start having regular family conversations about your household finances. You don’t need to share every detail of your bank account, but talk about how you decide whether to buy something or save for it instead.

These conversations are perfect for teaching the difference between needs and wants. Your teen might think they need the latest iPhone, but you can walk through that decision together. Do they need a phone? Yes. Does it have to be the newest model? That’s where the conversation gets interesting.

6. Find good financial apps that speak their language

We won’t sugarcoat it. Almost two-thirds of the money apps out there are garbage. The last thing you want is a shoddy app spoiling the fun of learning about money for your teen. It pays to do some homework.

As with any good research, you need to start with a list of the absolute best. Think about it: a top-10 Yelp list can be a lifesaver for diners looking for new restaurants to try without going through many hoops. Smart players can also sift through the best video game or mobile casino list to narrow down their search for their favorite gaming app. The same goes for when looking for financial literacy apps for your kiddo.

Go through a list of the top 4, 8, or 10 money apps with your teen. Draw a line on must-have features like parental controls, security, and restricted p2p fund transfers. In the end, you want your teenager to have at least one go-to app for budgeting, banking, savings, and investing.

Wrapping up: Model good money habits yourself

Teens watch everything you do, even when you think they’re not paying attention. It is one thing to bug your kid about money at every turn. Walking the talk yourself will make a 1,000 times better impression on them.

You don’t have to be perfect with money to teach your teen good habits. Share your own money mistakes and what you learned from them. That can be more powerful than pretending you’ve always had it figured out.

Disclaimer: This article is for informational purposes only and should not be taken as financial, investment, or legal advice. The information is provided without any warranty of any kind. Readers should conduct their own research and consult with a licensed financial professional before making any decisions.