The Framework: Earning, Saving, and Understanding Needs from Wants

In my last article, a penny under a booth at Corona’s gave my son, Robert, his first lesson in save, spend, or give. Those habits do not stay small. During the tween and teen years, they grow into earning a dollar, deciding how to use it, and telling wants from true needs. Three memories capture that shift for me: laying sod, opening my first checking account at 13, and a friend’s infamous gas-powered GoPed Trail Ripper scooter.

Earning: The Value of a Dollar

Laying sod is one of the more physically demanding ways for a young person to earn money. (It’s also a great way to encourage studying!) That job reinforced the value of a dollar for me because it was so hard to earn: one grueling hour equaled $10. It made me pause before spending on a movie that week! Earning builds character, confidence, and self-worth, and offers a taste of financial freedom. When should my kid work? Summer. What should they do? Anything…something! It helps if they enjoy it. Getting a job is intimidating, so parents play a key role. And resist comparing their experience to what you did back in the day to make a buck…not helpful.

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Saving: Give Every Dollar a Home

I grew up a saver and found real pride in it, especially gift money! My Grandmother was notable for giving $20 to her grandchildren for holidays like Thanksgiving or Valentine’s Day. That money went straight into my checking account, just to count. I remember visiting my Uncle Dave in New York in 2001 while he wrote his book, On the Run. Grandma mailed my $20 for Halloween to his apartment. How cool!? Then Dave suggested we use it for Chinese food, and I learned quickly we didn’t just want the food; we needed it. On my 13th birthday, my mom helped me open my own account and made it a big deal, because it was! I still remember the debit card with my dorky picture in the corner. A new level of responsibility and freedom for my earnings.

Needs vs. Wants: Both Deserve Respect

My best friend growing up made an outrageous purchase: a GoPed Trail Ripper. It was expensive, awesome, memorable, and certainly a “want.” I couldn’t believe Michael would dare spend $1,000. No kid needs a scooter that can go 30 mph (or a trip to the ER). But I don’t consider it a mistake. He could have saved that $1,000, but then we wouldn’t still be talking about it today. Needs should always come first, but wants should not be belittled.

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Key Takeaways

• Let them earn it. A hard-earned dollar teaches value faster than an allowance.
• Give saving a purpose. A dedicated account makes saving a visible, rewarding habit.
• Name the difference. Talk openly about needs versus wants so the line becomes second nature.

Next time, we move from the checking account to the investment account, exploring how late teens and young adults can put money to work through compounding, diversification, and their first investing account.

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