Hey there! It's Talk About Money Tuesday, your favorite day of the week! 🤑
It won’t be long before 2025 is over and done with, so I know you're probably thinking about New Year's resolutions and fresh starts. But your money also deserves a little attention at the end of the year. This is a natural moment to pause and reflect on your financial habits.
Of course, reviewing finances isn't just for adults. When young people check their own savings, income, or spending, they learn to think about money in a big-picture way. Money checkups can help them understand that making adjustments is a normal part of managing their finances.
I just finished my own end-of-year financial checkup and I (mostly) liked what I saw. Still, I'm going to negotiate my internet bill and my family cell phone plan this week to shake free some savings in 2026.
In the meantime, let's dig into the ins and outs of financial checkups and how you can talk to your children about reviewing their money habits before the new year begins.
Money Stat
44%
You have the right to receive one free copy of your credit report every year or you can view your report online every week. But recent data reveals that the information the credit bureaus gather about you may not be accurate.
In a 2024 study by Consumer Reports and WorkMoney, a nonprofit that helps people manage their finances, about 3,200 consumers reviewed their credit reports, and 44% of them found at least one error. Nearly 30% of the participants found errors that were serious enough to keep them from getting a loan.
These statistics highlight an important point: Checking up on your finances is critical, no matter your age. It's not enough to just check your bank account. You really should regularly review all the little details that make up your financial picture.
Even if your young people aren't dealing with credit just yet, they can start building the habit of tracking and reviewing their own money. A missing dollar here, a forgotten savings goal there — it all adds up!
Money in the News
The news: Most workers who have Flexible Spending Accounts, which allow them to use pre-tax dollars to pay for eligible health-related expenses, face a "use-it-or-lose-it" deadline of December 31 to make their purchases. A CNBC article makes the case that some people don't realize the deadline is looming, and they'll have to forfeit unused funds.
What it means for young people: A Flexible Spending Account, or FSA, shows kids (and adults, actually) that some money comes with rules and timelines. An FSA is a real-world lesson in financial literacy because it teaches them that not all dollars work the same way.
Tip for parents & mentors: Check your FSA balance with your child and explain that you don't have to rush out and spend, you're just reviewing what health-related items your family already planned to use this year. That way the money you've set aside to pay for them doesn't go to waste. (If you do find that you need to spend your FSA money ASAP, here are some suggestions on what to buy.)
When kids see their parents checking benefits, deadlines, and balances, they learn that part of managing money is using what you have wisely.
Money Talks
Doing a year-end money checkup doesn't have to feel like a test or performance review. Try to help kids think of it as a friendly look back at what they've learned about their money over the past year. Here's some questions you can ask to help young people talk about what went well, what surprised them, what didn't go as planned, and what they'd want to do differently next time:
1️⃣ Let's take a look at your savings. How close are you to your goals? Let's say your child has been saving to buy a new LEGO set and discovers they're only $8 away. Instead of feeling discouraged, they might tell you they've decided to skip buying a small toy next week so they can reach their goal faster.
2️⃣ Did anything happen this year that made you wish you had more money saved? Your teen may think back to when friends planned a last-minute weekend trip, but they couldn't go because they blew their money on snacks and clothes easier in the month. Talking with you about that could help them see how unplanned spending can limit choices later.
3️⃣ If we make a mini-plan for the next few weeks, how could we get ready for
new money goals in the new year? Looking ahead to next semester, your college student may see that they'll need money for textbook and club dues. Together, you can map out how setting aside part of their holiday money or work-study paycheck now could reduce financial stress when classes start.
4️⃣ Is there something about spending or saving you learned this year that surprised you? Sometimes young people are surprised by how quickly small purchases, like snacks, drinks, or fast fashion, can add up over the year.
To keep the conversation going, download a free sample set of my Money Talks cards. They let young people turn the tables and ask adults about their real-life money experiences. If you find yourself talking about that time when your teen self saved up to buy a ticket to see your favorite artist and the concert didn't live up to the hype...yeah, same.
Loose Change
💸 If life felt a lot more expensive in 2025, there are some reasons for that.
👀 Irregular expenses are budgeting’s hidden trap. This list gives you a heads up about some costs you shouldn't overlook as you budget for next year.
🤣 When talking dollar and cents with your kids gets too serious, sometimes a corny hilarious money joke is just what you need to lighten the mood.
Thanks for reading! If you know someone who cares about youth financial literacy, share this newsletter with them. And if this newsletter was forwarded to you, please subscribe here.
'Til next time,
Audrey
Founder/Certified Financial Education Instructor
The FinLit Zone
600 1st Ave, Ste 330 PMB 92768, Seattle, WA 98104-2246
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