For your teen, a part-time job is far more than earning extra cash. It’s a chance to develop smart habits that can shape their financial future.
Just ask 17-year-old Alexandra Johnson, a junior at Booker T. Washington High School in Pensacola. She started earning her own money — as a babysitter and a ranch hand — a couple years ago after getting her horse, a gray Appaloosa named Diva. “It’s expensive, and I wanted to help my parents as much as possible,” said Alexandra, who currently works as a part-time teacher’s helper at a church preschool and has dreams of being a veterinarian. “I’m also trying to save for college.”
Photo credit: Hazli Sanders
For Alexandra, who also fosters puppies, holding down a job has changed her thinking about spending. “I’m definitely more mindful,” she said. “I personally don’t go and buy things except for my animals. I put half of every paycheck in a savings account, and I do not touch my savings!”
Here in Florida, to earn a diploma, high school students are now required to complete a personal finance course, which covers money management and the basics of bank accounts, credit scores, taxes and debt. Alexandra took the course online through Florida Virtual School and found it eye-opening. “My teacher was amazing, and we had to make budgets for different scenarios in the future,” she said. “I feel more confident about managing my own money.”
That confidence is the ultimate goal, and as a parent, you play a vital role in your child’s financial education. To help you out, we consulted the experts and came up with three ways to put your working teen on the path to financial literacy:
- Discuss Money Openly and Regularly. When teens hear the adults in their lives talk about money, they become more comfortable and informed. When appropriate, help them understand what bills your family has and how you might spend or save discretionary income. As we live in an increasingly cashless society, it can also be helpful to discuss the importance of staying aware of digital balances.
- Create a Simple Budget for Their Earnings. Draft a weekly or monthly income-and-expense budget based on the money your teen is making. Include costs for things like gas, after-school fun, clothes and gifts, and help them think about the difference between wants and needs.
- Help Them Set Savings Goals. At any age, saving money is an exercise in patience and delayed gratification, but the payoff can be powerful. Start small by helping your teen identify two goals — one long-term, one short-term — and then show them how to put aside money for each. This can be a great opportunity to get your teen not only thinking about college but saving for it. They can even contribute to a Prepaid 529 Plan or Investment 529 Plan that you set up for them!
Remember, learning to be financially responsible takes time and consistency — and possibly a few missteps along the way. But with supportive parents who model good financial habits at home, your working student can make amazing strides!
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