As summer approaches, many teenagers will be wandering around the house looking for things to do or hanging out. But parents should encourage some positive activities like getting a job and using this time to teach their kids about money.
Why Should Your Teen Get a Job?
Why is this important, and what are some ways to do it?
Christa Mathews is a Certified Financial Educator (CFEd) encourages teenagers to use the summer to work and learn about money. She says, “The younger a child is when they start learning about money, the better off they will be all throughout life with it. The summer offers a great opportunity when there is some downtime to start the learning process. Doing things like getting a job, collecting a paycheck, saving and investing that money and so on are all extremely valuable lessons that will stay with you for many years to come. Parents should get involved as well and help guide their kids along the way.”
Related: Financial Literacy for Kids: Why it’s Important
Learning Responsibility
Having a summer job can help kids learn responsibility and accountability by managing their own time, being on time for work, and completing tasks efficiently in return for a paycheck.
Gaining Work Experience
A summer job provides a great opportunity for kids to gain work experience, learn new skills, and develop confidence in their abilities.
Building a Resume
By working during the summer, kids can add valuable experience to their resumes and make themselves more attractive for future endeavors.
Making Money
Earning money can give kids a sense of independence and help them learn the value of hard work and financial responsibility.
Related: Online Jobs for Teens: The Top 10 Ways for Teens To Earn Money
Managing Money
Saving money can be a difficult task for anyone, but especially for young adults who are not yet used to managing their own finances. It’s important to teach them the importance of saving and budgeting in their early years in order to have a healthy relationship with money in adulthood.
Related: 7 Ways to Save Money as a Teenager
Setting Financial Goals
Encourage kids to set goals for their summer earnings, whether it’s saving up for a new phone, a trip with friends, or contributing to their college fund.
Prioritizing Spending
It’s important for kids to prioritize their spending, focusing on necessities first and fun purchases second. They need to learn not to spend all of their discretionary income in one place.
Investing in Themselves
Encourage kids to invest in their education, whether it’s by taking courses, attending workshops or conferences, or finding books/podcasts about how to manage their money and build wealth.
Giving Back
Teach kids about the importance of giving back to their community, whether it’s by volunteering their time or donating a portion of their earnings to a charitable organization or research center.
Save for Emergencies
Encourage young adults to set aside a portion of their savings for emergencies, such as an unexpected flat tire, medical bills, etc. The sad reality is most people know they should have an emergency fund but don’t.
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This article was produced and syndicated by A Dime Saved.
Robyn Goldfarb
Hi! I am a millennial mom with a passion for personal finance. I have always been “into” personal finance but got inspired to start my blog after a period of extended unemployment. That experience really changed the way I viewed my relationship with money and the importance of accessible personal finance education.