Financial Literacy & Independence for Teens - Step 1 -Learning and Earning
KEY POINTS
Parents can help align their teenager’s interests and skillset with multiple rewarding career path options.
Education is a lifelong pursuit that does not end after high school. Encourage your teenager to pursue skilled trades, college, university, or to start their own business.
Qualitative skills, like the ability to negotiate can be developed early and pay dividends throughout your teenager’s career path.
Qualitative Attributes
The teenage years can provide many excellent opportunities to explore various types of jobs. The list is nearly endless and may include cashier, barista, host/greeter, restaurant server, lifeguard, delivery driver, house cleaner, babysitter, dog walker, grounds maintenance workers, and more.
Your teenager may not love any of their first few jobs or the relatively lower pay scale. However, the qualitative insight that these jobs can provide is invaluable. For example,
Babysitter
This job requires interpersonal skills involving communication and patience. There is also often a need to exercise problem-solving skills while ensuring the health and safety of the children.
Retail Associate
The ability to communicate while providing tailored customer service and simultaneously promoting products, making recommendations, and upselling is vital to success in this role. Teamwork and time management are also key as all aspects of the store must be organized and coordinated (e.g., stocking shelves, cleaning, organizing merchandise).
Restaurant Worker
This can be a fast-paced environment that requires stamina and the ability to work under pressure. The servers must have excellent customer service skills while the kitchen staff must pay great attention to detail as they prepare meals and follow recipes.
Tutor
This requires subject matter expertise and the ability to communicate. Problem solving is often required while simultaneously exhibiting a great amount of patience.
Lawn Care / Gardening
Some individuals love to work outside as opposed to being stuck behind a desk all day. The physicality, stamina required, and creativity can make these jobs very attractive to some individuals.
Talk to your teenagers about their jobs. Ask probing questions that can begin to develop a big picture of where their long-term interests may lie. Here are some easy questions to get the conversation going,
What aspects of the job do you find the most interesting, engaging, and rewarding? Why?
Do you prefer to work independently or as part of a team? Why?
What kind of work environment do you thrive in (e.g., fast paced, creative, structured)?
Do you enjoy problem-solving or finding solutions to problems?
What are some of your dreams or ambitions for the future?
The conversation surrounding these questions can lead to a discussion with a more long-term focus as they contemplate life after high school.
Education and Skills
Financial literacy at an early age is critical.
Teach teenagers that investing in their education and developing valuable skills is correlated with higher earning potential in the future. They should pursue subjects and activities that align with their interests and have good career paths.
Our review of the top paying jobs reinforces the link between education and compensation.
Education is a lifelong pursuit that does not end after high school. Encourage them to learn a skilled trade, enroll in college or university, or start their own business.
Resume Building and Interview Skills
Your teenager may have obtained various jobs with little or no need for a formal resume or an extensive interview. Such will change quickly.
Teach them how to create a professional resume and develop strong interview skills. Such may require participating in workshops with experts in the field.
Salary and Hourly Rates
Explain the difference between salary and hourly compensation models. The following highlights are subject to labor laws and regulations that can vary across countries and jurisdictions.
Salaried employees are paid a fixed amount of money over a defined period. The amount of money remains constant regardless of the number of hours worked. Typically, salaried employees are not paid for overtime; however, they often enjoy better perks than hourly employees (e.g., health insurance, retirement plans, paid vacation days). This overall pay structure usually leads to increased stability and predictability.
Employees that are paid hourly receive an agreed upon amount per hour for every hour worked. They are paid for overtime and such extra hours are often paid at a higher rate (e.g., time and a half, or double time); however, they often receive less attractive benefits compared to salaried employees. This overall pay structure may lead to less stability and predictability but may provide a higher degree of flexibility compared to salaried positions.
Entrepreneurship and the Gig Economy
The gig economy is diverse and provides substantial income potential with a variety of jobs to choose from. Many require a creative and entrepreneurial spirit. Some have financial risks embedded in them.
Discuss the basics of starting a business and the concept of risks and rewards. They will quickly learn that the need to wear many hats at one time (e.g., marketing, lead generation, sales, procurement, banking, financing, accounting, taxes, and so much more).
Watch as they convert their gig into a real business while potentially raising capital and building a successful business.
Negotiate Wages
The ability to negotiate wages can make a substantial impact on current lifestyle and the achievement of long-term savings goals. Not everyone will be comfortable with the live negotiating process.
The good news is that the actual negotiation is only one part of the process. Negotiations often result in unfavorable outcomes if the following preceding steps are not properly executed.
First and foremost, an individual must be able to articulate their value. Consider their accomplishments, expertise, and any increased responsibilities they have assumed.
Perform extensive research at an industry and company level. They must gather information about the industry standards, salary ranges for similar roles, and the company’s compensation policies.
Next, set realistic expectations. Develop a salary range that they consider acceptable. Ensure they can justify the range and why they fit into such range.
Finally, build a case and approach the employer to commence negotiations. Present the case with confidence and clarity, while demonstrating the personal value brought to the table and how it aligns with the company’s goals. Be prepared for a full range of responses that may include refusal, acceptance, or a counteroffer.
Counteroffers may include a mix of compensation, group benefits, vacation, flexible hours, work from home, professional development / training, and more.
BOTTOM LINE
Education and skills training are directly correlated to future earnings potential. Take the time to understand the individual’s passions, interests, strengths, weaknesses, and how such align with various career paths of interest. An entrepreneurial venture may be just the experience necessary to provide clarity and guidance. Any time invested at this stage will pay dividends for years to come.
