Teenagers often find it difficult to manage their own finances, in part because of the plethora of different payment methods they face, according to research by family spending institute Nibud and ABN Amro, the inventor of the Tikkie micropayment system.

Payment requests, mail order items that need to be returned, and “buy now, pay later” products are all impacting teenagers’ ability to manage their money, the researchers said. In total, almost 1,600 secondary school pupils took part in the project.

“Pupils can lose grip on their finances because they think they have more or less money to spend than they actually have,” Nibud director Arjan Vliegenthart said. “It is important to learn to get your money sorted before you turn 18. Once you are an adult, you will have even more to deal with, and then you really need to watch out not to get into trouble.”

The researchers found that 66% of teenagers check their bank balance once a week, compared with fewer than half in 2020. Bank apps also allow them to keep a better eye on their spending.

However, unpaid payment requests and invoices are an added problem, and many teenagers have no idea how much actual cash they have either, the researchers said.

“Many of them don’t know how much they spend on drinks and snacks,” said ABN Amro youth finance expert Babet Boswinkel. “Yet at the same time, they say knowing this would help them be more aware of their money.”

Some 75% of teenagers use payment request systems like Tikkie and send an average of 20 a month. But one-third admit to not always paying them, and another third say they lose track of what payments they need to make.

Teenagers financial education often starts with notes and coins, Boswinkel pointed out. “But they are growing up in a world in which digital payments are the norm.”