The past couple of years have been rough for all of us. The pandemic and constant lockdowns have made thousands of people redundant. This time has also been challenging for teenagers and adolescents.
Everything has changed to contactless including education and jobs. While businesses are trying to adapt to the new reality, there are a lot of “help wanted” signs in the storefronts. It means teens may benefit from getting a summer job to earn some cash and improve their financial literacy.
A Teen Workers Market
Teenagers and adolescents also want to have some cash to fund their needs. Many adults and young people struggle to make ends meet especially those who were temporarily laid off due to the pandemic. Those who urgently feel the cash need may use apps for cash advances but it’s always better to get at least a part-time job for the summer holidays and finance your own needs. More and more recruiters are willing to offer some jobs to young people.
It’s a widespread situation when American employers decide to reach out to teenagers and students and offer them opportunities for career development. While common internships used to be free in the past, they usually come with decent pay these days.
There is a wide choice of summer positions to gain some work experience and earn additional money. For instance, teenagers may try themselves in fast food jobs. Generally, these positions are several dollars better than the federal minimum wage and start at $12 per hour.
4 Ways Summer Jobs Benefit Teens
There is no doubt that summer jobs can be extremely beneficial for adolescents. Here is how teens and young people may benefit from them:
- Establishing strong work habits. This is a great opportunity to establish and explore work ethic, determination, as well as motivation. Young people who decide to land a summer job will be able to learn how to deal with different consequences as well as obtain valuable lessons on commitment and time management.
- Earning responsibility. Usually, parents and teachers are the ones giving directions to teens. Being exposed to new duties, teens will accept feedback from others and learn how to work in a team, and eventually develop into responsible young adults.
- Building confidence. Getting a summer job will also teach teens to feel more independent, have their own funds, and be responsible for themselves and their decisions.
- Gaining independence. Moreover, it’s a wonderful chance to become more independent. Teens will earn their own money and learn how to spend or save it.
Smart Money Moves for Teens
Getting a summer job can be beneficial for teens and adolescents. It offers learning opportunities for them to earn some cash and manage their expenses. According to the U.S. Bureau of Labor Statistics, unemployment is under 4% overall, while the rate for teenagers aged 16-19 was only over 10% in April. Smart money moves and the following actions can help young people learn from these valuable life lessons and improve their money management skills.
Set up a Bank Account
Parents can teach their teens how to monitor their money by setting up a bank account for them. Since minors aren’t legally allowed to open checking account on their own, parents may open a joint or custodial account. You should tell your kids how to use direct deposit for their paychecks and how to monitor their accounts.
Nowadays, this process is digital and can easily be conducted from your phones. Young people may connect their checking account to a personal finance app. It will help them see where their income goes and how well they can manage their expenses. Reconciling the bank account and understanding a bank statement is what teens should begin with when they are about to find a summer job.
Create a Budget and Save Some Money
Parents should also tell their teens what expenses they will need to cover on their own. You may talk about entertainment costs, trips with their friends, clothing, etc. They need to learn how to create a budget and direct their monetary resources to the things that really matter.
It’s essential for teens and adolescents to learn how to set financial goals, budget their money, and save for desired purchases. Parents may help teens set up certain categories for savings and spending. It’s also important to distinguish between near-term and long-term financial targets.
Start Talking about Career
Getting a summer job as a babysitter, lifeguard, or fast food server may help teens learn responsibility, confidence, and other valuable life skills that will eventually help them later in their lives. Such skills and experience will be significant for their future career. Discuss the natural talents and abilities of your teens.
They may be good with technology or have entrepreneurial skills. If they recognize their talents, they will learn how to take advantage of them and use them for reaching their aims.
Remember about Taxes
Taxes is the topic many parents need to remember and discuss with their children so that they are prepared for adult life. Don’t forget to check the income of your teen as well as the IRS site to understand if your kid should file a return.
If their recruiter withheld taxes, they may be eligible for a refund even though they don’t owe any funds to the government. Help your adolescents with the return and show them how to run the numbers.
The Bottom Line
To sum up, summer jobs for teens may help them receive a first-time look at money management and gain their own experience with financial mistakes. Such first summer positions can shape their relationship with saving, spending, and investing.
Parents will help their adolescents to adopt important skills and boost their financial literacy to build a solid foundation for their future life. Besides, summer jobs will help teens build confidence and independence and have a positive impact on their development toward adulthood.