Imagine this: A scene from the movie Aisha. Her father holds a credit card statement, staring at a whopping ₹53,000 spent. Aisha walks through each item, explaining where the money went, dinners with friends, shopping, a few impulsive splurges. She knows what she spent, but when asked why, she freezes. She can’t articulate the reasoning behind her decisions. She doesn’t really understand her own money choices.

There are multiple reasons why teens act this way, and they’re not just “irresponsible.”

• The Need to Fit In: Teens want to belong. That trendy gadget, that influencer-inspired purchase, that online subscription, all of it often comes from a desire to “look cool” rather than genuine need.

• Reckless Spending: Without guidance, teens spend impulsively. They may earn pocket money, get gifts, or even have early access to credit. The thrill of buying can easily override rational thinking.

• Seeking Validation: In a world dominated by social media, teens often chase likes, followers, or peer approval. They get addicted to trends and purchases that promise status or recognition.

• Brain Development: The pre-frontal cortex, which governs decision-making, impulse control, and long-term planning, is still developing in teens. Their actions are often driven more by emotion than logic.

• Lack of Financial Education: Most Indian schools don’t prioritize money management. Teens grow up unaware of savings, budgeting, or even the basics of responsible spending.

The gap becomes glaringly visible when teens leave home for higher education; be it graduation or post-graduation. For the first time, many young adults face the real heat of managing their own money: rent, groceries, books, social outings, and the pressure to save for future needs.

Without prior guidance, many students repeatedly ask their parents for funds. Parents feel obliged to provide, because the young adult “needs it.” But repeated dependency can mask the deeper issue: the teen has never learned to prioritize, budget, or self-regulate their spending.

Creating Budgets: Simple monthly budgets help teens understand the balance between needs and wants. Encourage them to allocate money for essentials, savings, and discretionary spending. This creates a habit of conscious spending early.

Financial Awareness: Since schools often put this on the back-burner, parents need to step in. Teach teens the value of money, the consequences of debt, and the importance of long-term planning. Discuss concepts like interest, investment, and emergency funds in relatable ways: through stories, films, or real-life examples.

Financial literacy isn’t just about math; it’s about mindset, responsibility, and self-awareness. Helping teens understand their choices now lays the foundation for confident, independent adults. When they can answer why they spend, not just what, they step into adulthood with clarity, control, and the ability to align their actions with their goals.