If you have a teenager, you know that teaching them the value of a dollar can be challenging. And you probably know that because not too long ago, you were in their shoes.

According to recent reports, American teenagers don’t have stellar financial literacy (with a higher gap in financial literacy between teenagers from high-income households and low-income households).

The reality is, financial literacy is not taught in school. That means as their parent, you have the greater responsibility of teaching them how to make healthy decisions. This includes knowing how to make wise financial decisions and build good credit.

But wait … are you nervous because you haven’t made the best financial decisions in the past?

A common mistake we make is to avoid what is, in actuality, inevitable. In other words, avoiding speaking to your child about their finances because you haven’t been the best example. In reality, that will only delay what they’ll have to figure at some point anyways! You’re best bet is to start that journey together today.

Managing a monthly allowance, or the earnings from their part-time job, is a great way for your teen to learn about responsibility.

A credit card is a viable option if you have a mature teenager who’s looking to establish good credit. It’s important to note here that good financial literacy is the foundation, and establishing good credit is the next level.

Helping your teen to become financially literate will put them ahead of the game and set them apart from their peers. They might (still!) seem like your child, but trust us, their first car or house is just a few years away.