The 700 youngsters from low-income families who are part of a Child Development Fund project will be paid up to HK$15,000 to boost their potential.
First announced in the last budget, the HK$300 million fund will soon seek approval from the legislature and could be launched in the middle of next year.
Each student aged 12 to 16 in the programme, which will be run by NGOs, would be subsidised for two years, Health, Welfare and Food deputy secretary Carol Yip Man-kuen said.
Citing education and skills for future employment, she said subsidies would be spent on activities to boost the teenagers' potential and employability.
The scheme targets two groups of students. Full subsidies will come from either the Student Financial Assistance Agency or, if they are from low-income families, the Comprehensive Social Security Assistance scheme.
The government's proposal includes a targeted savings programme for all participants, which encourages teenagers to save HK$200 a month over the two years, with the business sector or individual donors providing a matching contribution.