Summer jobs are a great way to expose your teen to the realities of the job market and of life. It’s also a great way to teach them financial management.
Here’s CNN’s take on teaching your kid paycheck management.
Tax. The only other constant alongside death, unless of course, you live in a tax haven (Americans obviously don’t). So better give your kid that lecture differentiating gross and net. That Uncle Sam’s set to get a piece of every dollar they earn.
Banking. Now that they have their own money, teach them how to safely keep it. Money in the pocket is money that can easily be spent. Take them to the bank and have them open a savings account.
Delayed gratification. So what will your kid do with the money? Many kids will be tempted to blow their whole paycheck on the day they get it. A bit of advice on timing their spending would be most welcome.
Leeway. While the two points above this one advise trying to control how your kids spend money, give them the final say on what to do with the money. It’s their money. They need to be exposed to making financial decisions on their own.
