Money Skills for Kids

Lesson 4: High School Children & Teenagers And Money

Earning an income while keeping up the grades (older set)

Your children have gotten to the point where cleaning out the litter box will no longer subsidize their “wants”. Since they have successfully learned that money is something that can be earned, they are now telling you they want to get a job. You are cheering, but then you realize the full impact of that statement...how, where, when, and what about the homework?

As with the younger set, this is the time to sit down with your teenager and explain the expectations you have, i.e. that there will be enough time to spend on homework, etc. so the grades will not suffer. If the grades slip, s/he will have to quit her/his job and do without the additional money. Additionally, there are now other questions to consider:

• What kind job does your teenager think s/he is suited for? Help her/him to think about their skills, likes, and dislikes. Then, help your teenager translate this into positions available within the current job market. The Bureau of Labor Statistics offers some great advice for matching potential job seekers with available careers.
• Be mindful of legal issues...you teenager may need to get a work permit and the hours that s/he is allowed to work are most likely very limited. You can check with your local police department or check with an employer you know about these items. Additionally, the US Department of Labor has a good on-line information section that will answer a lot of questions. (1)
• If s/he begins to successfully hold down a job, you will also have to renegotiate the chores your teenager is expected to do at home. It is only fair that s/he continues to do her/his share of fulfilling responsibilities at home, but since s/he is now also working, the frequency of the chores may need to be adjusted so s/he will still be able to pay full attention to her/his homework as well have some time left over for extracurricular activities.
• Before your child receives the first check, talk about gross and net, and who FICA is. This way, s/he won’t be dreaming about all the extra money s/he’ll have to spend only to realize that a fair chunk goes to Uncle Sam. The IRS has created a great site that will allow your teen to understand how much s/he really gets to take home, whether s/he is paid hourly, or with tips. (2)

Additionally, take the time to check with the IRS to make sure what, if any, tax implications your teen’s job will have on your taxes when next April rolls around.

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In order to prepare your college-bound teenager for renting and living on her/his own for the first time, please visit Washington's Budget Site for teens.

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