How teens are changing spending habits
When most of us think back to our teenage years, money was something we either spent as fast as we earned or never really thought about. A paycheck meant gas for the car, grabbing food with friends, or maybe a new pair of shoes. But today’s teens are rewriting the script.
Gen Z, the group now filling high schools and colleges, is surprisingly money-savvy. A recent Bank of America survey found that more than 7 in 10 young adults are actively working to improve their financial health. That means they’re not just spending, they’re saving, too. Many are even cutting back on luxuries like take-out or coffee shop runs in order to build up a cushion for the future.
One of the most interesting shifts is a new concept called “loud budgeting.” Instead of keeping their money goals private, teens are talking about them openly with their friends, family, and even on TikTok. You’ll hear them say things like, “I’m challenging myself to save $500 this month” or “I’m spending $0 on eating out.” By being open, they’re holding themselves accountable while showing friends that saving is cool and managing money doesn’t have to be stressful or secretive.
It probably comes as no surprise that most teens aren’t stuffing cash in wallets. They’re using apps, payment platforms, and digital wallets. These features make it easy to swipe or tap for payment while also tracking spending and savings progress to help reinforce healthy financial habits.
For parents and grandparents, this shift is a chance to connect. Teens are more open to talking about money than ever before. Instead of the old “lecture about saving,” you might ask: “What’s one thing you’re choosing to cut back on this month?” Or share your own saving strategy, even if it’s as simple as skipping drive-thru coffee once a week.
SAFE Federal Credit Union is taking that connection one step further with its in-school, personal finance course. Many teens in South Carolina are learning how to earn, spend, borrow, and build credit in a simulated environment offered at their school through a partnership with SAFE. It's a modern take on money management that makes learning key financial principles more meaningful and relevant for today's tech-savvy teens.
The truth is, young people today are proving that money talk doesn’t have to be stressful. It can be honest, empowering, and even fun. And, the more we make those conversations part of everyday family life, the better prepared they’ll be for the future.
If your teen is ready to put their smart money habits into action, SAFE Federal Credit Union offers youth accounts designed to make saving simple and rewarding. From early savings options to tools for managing money responsibly, these accounts help young members build strong financial foundations. Have questions or want to learn more? Contact SAFE today to get started.