Starting your first job is a big milestone—and for many teens, it’s their first taste of financial independence. Whether your teen is working a summer gig or kicking off a longer-term role, it’s the perfect time to teach the basics of money management.

Here are five key financial steps every teen should take—with support from your hometown team at American State Bank.

1. Open a Savings Account

Before that first paycheck lands, talk to your teen about the importance of saving early and often. While it’s tempting to spend every dollar right away, creating good saving habits now can pay off for years to come.

Benefits of a teen savings account:

  • Teaches discipline and goal setting
  • Provides a financial safety net
  • Builds confidence and independence

Did you know?

American State Bank offers the Club 22 Savings Account, designed especially for young students who want to start building their future—whether it’s for college, a car, or just peace of mind.

2. Learn How to Create a Budget

Budgeting doesn’t have to be complicated—but it is essential. Help your teen map out a simple budget by:

  • Listing expected income
  • Categorizing expenses (gas, food, entertainment, savings)
  • Setting aside a small amount for fun spending

Bonus tip: Include them in your own budgeting conversations so they see how it works in real life.

Need help getting started? Bring your teen into any ASB location to chat with our team—we’ll walk them through it in a way that’s easy to understand.

3. Understand Taxes (Before the Paycheck Shock)

That first paycheck can come as a surprise when the number doesn’t match what your teen expected. This is a great opportunity to explain:

  • Income taxes
  • Social Security and Medicare deductions
  • The difference between gross pay and net pay

We’re here to help explain those line items—and make sure they know what to expect.

4. Know How to Read a Paycheck Stub

Understanding how to read a pay stub is just as important as earning the money. Teach your teen:

  • What “gross earnings” and “net income” mean
  • How to spot potential errors
  • Why tracking hours and wages matters

Mistakes happen—but knowing what to look for means they can catch issues early.

5. Set a Financial Goal

Lastly, help your teen set a specific goal for their earnings. Whether it’s saving for a car, building a college fund, or buying something special, having a goal:

  • Keeps them motivated
  • Reinforces the value of saving
  • Builds money management skills

Encourage them to track their progress—and celebrate the wins along the way.

We’re Here to Help Teens Build Smart Money Habits

Talking about money doesn’t have to be intimidating. At American State Bank, we’re happy to sit down with you and your teen to make sure they feel confident and ready to manage their first paychecks.

Visit americanstatebank.com or stop by a branch to learn more about our youth savings accounts, budgeting tips, and financial literacy support.

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