Helping Your Kid Manage Money and Opportunity on Their First Summer Job

Your teen’s first experience working for an employer marks a milestone in their lives. While they might have earned allowances when they were younger for chores and for neighborhood babysitting, that first real job with a paycheck is a chance for a child to learn how to make smart choices with the money they earn.


Hopefully you’ve had a chance to teach them about putting money aside in a piggy bank or saving for particular toys, treats or activities long before now. When it comes to the job search or counseling on money issues, here are some things that parents can do:

Talk about your own work values: Kids learn by example. At ages earlier than most parents might believe, kids pick up whether their parents have a good or bad relationship with work and money. Think about what you say about your own job – do you complain a lot about your boss or co-workers? Do you gripe about your paycheck? Are you realistic about the good and bad days? If you’re passionate about what you do, do you talk to your child about that in a way they can understand? One of the best lessons a parent can teach a child about work is a simple one: Do what you love. Once a child understands this, they’ll begin to understand that work isn’t about money alone.

Discuss what a child likes to do: Sometimes the best job in the world for an unfocused teenager might be in fast food or construction because those jobs are tough, tiring and not-too-subtle reminders that getting a college degree can vastly widen one’s horizons. But if they have special skills, such as working with computers or teaching kids, that’s an opportunity to get them thinking about jobs that are more rewarding and pay potentially more than minimum wage. So don’t discourage self-employment. The skills a teenager uses to earn income at 14 or 15 might pave their way to a college scholarship at 18. Also, don’t fail to mention the benefit of working summer internships in their chosen interests when they get to college.

Know the law: If your child gets a job at a nationally known employer, chances are that standard work rules will be followed. But it’s good for parents to know what those rules are and to make sure their kids know them too. Parents and teens can do some research themselves about teen work, work rules and safety by visiting the U.S. Occupational Safety & Health Administration’s Teen Workers Web site.

Teach your kids to job-search like an adult: Get your kids to start looking for work months ahead of when they’ll need the job. Get them to read the want ads. Have them check salary averages for the jobs they’re thinking about on the Internet. Have them check out prospective employers as well – the Internet will allow them not only to learn about the company, but possible problems the company has as well. There’s really no reason to wait – anything you’ve ever done to check out a future employer, teach those skills to your teen. Also, encourage them to talk to family members, teachers and community leaders you trust about job possibilities nearby – it’s never too early to learn how to network.

Sit down with that first pay stub: If you can, take a minute to make sure your teen sees exactly how much of their pay goes toward taxes and other key withholding items and what that will potentially mean at tax time. Then encourage them to have a little fun with that first paycheck before they go on to save the others. They worked hard for that money.

Make sure they have a bank account: Many employers do direct deposit, so a bank account will probably be a necessity for your child. But encourage them to start both a checking and savings account so they understand that some money is for savings and some is for spending, particularly if they’ll need to have a role in saving for college or paying for a car and maintenance.

Prepare yourself to deal with their mistakes and failures: Your child may have rough times on the job; they might lose their job or fail to get paid. Don’t fight their battles for them, but be ready to offer advice that will encourage them to work well with people, always look for better opportunities and make sure they’re being valued for their labor. The best work lessons are not always about money.

May 2010 — This column is provided by the Financial Planning Association® (FPA®) of Puget Sound , the leadership and advocacy organization connecting those who provide, support and benefit from professional financial planning. FPA is the community that fosters the value of financial planning and advances the financial planning profession and its members demonstrate and support a professional commitment to education and a client-centered financial planning process. Please credit FPA of Puget Sound if you use this column in whole or in part.

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