Chad Foster’s Financial Literacy for Teens: 3 Must-Know Money Lessons for Young People

Guest Blogger Louis Xie

In this special guest blog, Sammy Rabbit is proud to showcase the insights of Jinkang "Louis" Xie as he shares 3 must-know money lessons from Chad Foster's book Financial Literacy for Teens.

Louis Xie is an incoming student at Northeastern University. He plans on majoring in Politics, Philosophy, and Economics and Business Administration. He is deeply interested in finance, strategic decision-making, and the relationship between markets and human behavior. With a strong foundation in classical philosophy and economic theory, Louis is committed to disciplined personal growth and empowering others through financial literacy and informed decision-making. His long-term goal is to build a career in private equity and global business strategy.

Discover more about Louis on LinkedIn: Jingkang (Louis) Xie

Back Story

The teenage years are basically all about figuring out what you want, who you are, and the kind of person you want to become. That’s definitely been true for me, how about you?

So when SammyRabbit.com founder, Sam X Renick asked if I wanted to read and review Chad Foster’s book Financial Literacy for Teens, I was honestly curious to see what it was all about. Let’s face it, money plays a huge part in shaping the future and figuring out the life we want to create for ourselves.

That’s why I said yes to Sam. In this blog, I’m sharing three money lessons from the book that I believe every teen and young adult "must-know," especially if they’re serious about becoming their best self and creating the future they want.

A Quick Snapshot: Financial Literacy for Teens

Financial Literacy for Teens honestly feels like the kind of money guide we actually need — no boring textbook vibes, just real-life stuff we can use. The book's super easy to follow. It’s broken down into four main parts: how to make money, manage it, grow it, and protect it.

What I liked is how it hits on questions most of us never really learn about in school like how to avoid making a $100,000 mistake or how to think differently about a million dollars. It’s a fun, straightforward way to get into the basics: earning, saving, investing, budgeting, and staying out of debt (trust me, that last one’s important).

And, perhaps one fo the best part? It’s not packed with confusing words or boring definitions. Chad Foster keeps it real with stories and examples that actually make sense for where we’re at right now. You can tell he wants young people to really understand money so we can start building the future we want without making huge mistakes first.

Okay. Let's get into it. Here are my 3 must-know money lessons from the book!

Lesson 1: Earn Your Own Money

When you earn your own money, you feel the reality of money.

Summary:
Earning your own money is completely different than just having it handed to you by your parents, relatives, or receiving it for birthdays and holidays. Have you ever really stopped to think about the difference? I don’t know about you, but I’ve definitely thought about it, mostly because I always feel like I’m begging my parents for money. And let’s be honest, that doesn’t feel good.

In Financial Literacy for Teens, Chad Foster talks about how making your own money, whether it’s through a part-time job, side hustle, or creative project, helps build both your confidence and your skills. It gets you out of that awkward “begging for money” mode. More importantly, it gives you real-life experience with how money works. You start to understand how things like taxes, insurance, credit cards, and your spending choices all connect, and how they can either help or hurt your financial situation.

Why It Matters:
When you earn your own money, you feel the reality of money. You know how much it stings to see your wallet empty, and how good it feels when you can finally buy something that actually means something to you. You also start to notice the mistakes you’ve made with money, and hopefully, you learn to treat it with more care. Plus, earning your own money helps you recognize the difference between what you need and what you want, so you can start prioritizing the smart way.

Real Example:
For example, I actually started working part-time pretty late at 19. It was tough to land my first job, but I still made it happen. I started working at a local small business, and my job was to teach the 75-year-old owner how to use an iPad.

Before that, whenever I wanted to buy something, I would just ask my parents if they could get it for me. But one day, my dad finally said no. He told me, “If you want it, get a job.”

Once I started earning my own money, everything changed. Suddenly, I became super cautious about spending because I actually cared about my bank balance. Every time I made a purchase, I’d get that notification showing how much my balance dropped and honestly, it didn’t feel good.

That’s when I started thinking differently. I began asking myself how I could make that number grow instead of watching it shrink. It motivated me to start saving, thinking about investing, and even giving some money away.

This is exactly why I feel so strongly about this point in Foster’s book and why I believe it’s one of the three money lessons every young person must know.

Lesson 2: Get to Know How Money Should Be Used

Once teens start earning money, they’ll face situations they never imagined.

Summary:
Foster explains that money can be used in four main ways: spend it, give it away, invest it, and save it. He talks about the existence of taxes and insurance, and how to protect your money and property. He also helps teens recognize scams, whether they come from the internet or your mailbox.

Why It Matters:
Once teens start earning money, they’ll face situations they never imagined. Without doing their homework on how to manage it wisely, they might run into some painful experiences. Many teens haven’t had a close conversation with “Uncle Sam” yet, but once taxes kick in, they will. And not many have crossed paths with the “Credit Company Stalker” or the “Compound Interest Invader,” the sneaky wealth robbers that show up when unpaid debt piles up. But trust me, if you don’t know how to handle money, they’ll show up fast, crash the party, and leave a financial hangover that’s not so easy to shake.

Real Example:

I’ve always been into photography. At some point, I got tired of how my phone pictures looked, so I decided to start saving up for a real camera. After a lot of saving, I finally bought one, but I didn’t think through what came next.

Turns out, owning a camera isn’t as simple as just buying it. You need accessories like a decent UV lens, a good memory card, and all of that adds up fast. It honestly frustrated me, but it also taught me a solid lesson: do your homework before making a big purchase, whether it’s a camera, a car, or anything else.

I personally like photography a lot. When I started not getting satisfied with the photo I took with my phone, I wanted to start saving money for a camera for my photography hobby. After I saved enough money for the camera, I bought it, but I didn’t realize the problems behind it. For example, to be able to operate a camera well, there will be accessories that are needed for the camera, for example a good UV Lens and a good size memory card. These all cost a very good amount of MONEY, and that really made me frustrated, and gave me a hard lesson of doing home working before making BIG PURCHASE like camera or cars

Lesson 3: Build a Future, Not Just a Lifestyle

...Even though my parents are business owners, they’ve always been super disciplined with money. Looking back now, I realize they were living what Foster calls the Journey-Driven Life, making smart money choices to stay in control.

Summary:
The third big takeaway from Financial Literacy for Teens is how our money choices — especially the ones we make over and over basically set us on one of two life paths. Each path leads to a completely different outcome.

Foster calls them the Journey-Driven Life and the Lifestyle-Driven Journey and trust me, they are not the same thing.

The Lifestyle-Driven Journey is when you focus on looking good, having the latest stuff, and spending money to impress others, even if it means living paycheck to paycheck or piling up debt.

On the other hand, the Journey-Driven Life is about building a life with purpose. It means making money decisions that support your bigger goals, like financial independence, experiences that matter, and the freedom to live life on your terms.

Foster makes it clear, the Journey-Driven Life is the one worth choosing.

Why It Matters:
It’s easy to get caught up chasing a lifestyle, the newest phone, the trendiest clothes, or trying to impress people on social media. But Foster explains that when you live that way, you’re letting your spending control your life, instead of building the life you actually want.

The Journey-Driven Life flips that. It’s about focusing on your goals, your purpose, and making money choices that support your bigger vision, not just short-term wants.

Foster sums it up perfectly:

"I don’t care what career you choose, because in the end, it really doesn’t matter. If you spend the next 86,000 hours of your life doing something you enjoy, something you are good at, and something that makes the most of your natural talents, then I can assure you, the money will follow."

That’s why this lesson hit me, financial success isn’t just about how much you make, it’s about building your life in a way that money works for you.

Real Example:
I spent a year at this private middle school where most of the kids came from pretty wealthy families. Their parents let them spend money however they wanted — buying what they wanted, living that so-called “good life.” But my parents weren’t like that. They didn’t believe in what you’d call “fun spending.”

Honestly, that whole environment messed with me. Everyone around me was dropping hundreds of dollars on sneakers, and I couldn’t stop thinking about how cool it would feel to have a pair like that. But to my parents, it made zero sense. Even though they’re business owners, they’ve always been super disciplined with money. Looking back now, I realize they were living what Foster calls the Journey-Driven Life, making smart money choices to stay in control.

But at the time, I didn’t get it. I was frustrated — honestly, I was kind of hurt — when my dad got mad at me for constantly begging him to buy those shoes. The answer was always no.

After that year, I switched to public school and made some real, down-to-earth friends. A couple of years later, it finally clicked — I’d been stuck chasing a lifestyle that didn’t even matter. I’m glad I snapped out of that mindset — I don’t feel the need to impress people or live like that anymore.

That’s why this part of Foster’s book hit me so hard, because I’ve been there and lived it. And I honestly think this is one of the three biggest money lessons every young person must know if they want to live life on their terms, not waste time chasing someone else’s version of success.

Final Thoughts

Let’s be real, young people today are under a lot of pressure. Life’s moving fast, career paths are changing, and social media constantly reminds us of what we don’t have. On top of that, nothing’s cheap, not college, not rent, not even the basics. And everywhere you turn, there’s something tempting you to spend money you don’t have on stuff you probably don’t need.

That’s why I think Financial Literacy for Teens is worth the time. It doesn’t promise some get-rich-quick scheme, but it does break down how to take control of your money early and make smart choices that’ll help you later. I got a lot out of it, real advice that actually makes sense for where I and other young people are at right now.

If you want to understand money better and set yourself up for success, I definitely recommend giving it a read.

Connect with our Featured Guest Blogger

Learn more about Louis, connect with him on LinkedIn: Jingkang (Louis) Xie

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