Schools do what they can to prepare kids for the real world, but many teenagers come through high school with little, to no knowledge of how to handle their personal finances. Here, you'll find a few tips to pass on to your teen so he or she can enter their adult lives with the knowledge they need to thrive.

Checking Accounts Are Free

So many people make the mistake of paying for a basic checking account. The truth is, there are many free checking account options out there.

Show your teen how to compare checking accounts. Show them to look at all of the penalty rates, what the minimum balance might be and if there's a debit card associated with the account. Show them the importance of reading through the entire Terms of Service tied to each checking account to avoid choosing an account that will end up costing them more money than it should.

Write Out a Check

Does your teen know how to write out a check? Checks are used so infrequently that even many young adults question how to do it properly. Give your teen a blank check to fill out. If he or she knows how to do it right—awesome—if not, show them how it's done properly.

Tip: Don't forget to show them how to manage the records for their checking account. These days, with electronic checking moving so quickly, paper tracking is pushed to the side and checking online balances daily becomes the norm.

Building Credit

It's never too early to learn about building credit—at least what mistakes to avoid making early in life that'll haunt you financially later.

Make sure your kid understands that job consistency matters. If you have a teen that hops from one job to the next and the next, make sure they understand that will make it much more difficult to gain financing. Most financing companies are looking for applicants with steady work history for at least one year.

Look into Secured Credit Cards

Secured credit cards can help your kid build credit for the future. These cards are prepaid so your kid has to put money into the account before it can be used. Then, as the money is spent, it needs to be put back into the account—keeping the account balanced will establish the credit that he or she wants.

Don't let your teen head off into life without understanding finances. He or she will be grateful when the day comes to buy a car or home or start their own business.