With school out, kids, especially teens, are in full relaxation mode, and are enjoying the summer. That’s all well and good, but with more free time on their hands, it might be beneficial to consider talking to your teen about getting a job.
The idea of summer jobs is nothing new. Data from the US Bureau of Labor Statistics shows that employment typically rises for 16- to 19-year-olds during June, July, and August. I myself used to work year-round as a babysitter, even more in the summer months, of course. I loved that feeling of having a part-time job while I wasn’t in school. It created more routine and balance to summer days and it was great to earn a little cash.
Teens have a lot to gain from a summer job in addition to the money they'll earn.
“A primary benefit of a summer or part-time job is the sense of financial independence that comes with earning that paycheck,” says Jennifer Seitz, a Certified Financial Education Instructor and Educational Content Leader at Greenlight. “And earning more money brings more opportunity to learn how to earn, budget, and save.”
In a Greenlight survey, teens ranked how to manage money as the No. 1 most valuable lesson they will learn from working, followed by work ethic, and learning to build a resume and interview. Jennifer says it’s not all about the money. The work experience teens gain over the summer layers in new challenges for teamwork and problem-solving beyond the core responsibility of arriving on time prepared to do their best.
With some creativity and business savvy, teens can have fun earning money while not in school.
If they have an idea that they believe people would be interested in spending money on, this is a great time to take a chance and create a business of their own. If they feel strongly enough in their idea and believe people would be interested in spending money on what they are offering, whether selling goods or providing services — do it! Jennifer says it takes the right mindset and skills to be successful, like confidence and commitment.
Teen entrepreneurs have so many options open to them for summer jobs.
Jennifer says some options for teens to consider this summer could be:
• Taking care of pets: Teens can offer their services taking care of pets while owners are out of town on summer vacation or too busy for a daily walk around the block in the neighborhood.
• Do something they love: Online marketplaces like Etsy make it easy to sell homemade crafts, jewelry, or other items. One Greenlight kid started his own business selling popcorn after learning how to make it in school. This Greenlight teen started her own business making candles — and she wrote a book on becoming an entrepreneur, too.
• Tutor: Teens have a wealth of knowledge — maybe they’re a star basketball player or excel in Spanish. Summer is the time to pass those skills on to younger kids in the district. Teens can offer hourly tutoring or run summer workshops for local youth.
• Help with neighborhood odd jobs: Teens can take on chores for their neighbors — like lawn mowing, car washing, or running errands — at an hourly rate, or by the job.
Of course, once teens begin a business venture, they’re probably going to be focused on the money.
Extra money may feel like a bonus in the summer months, but that doesn’t mean it’s time to splurge. If you’re like me when I was a teen, you will want to save! I made sure to put my money in a bank account and let it grow.
“Teens should take advantage of this early start and save a majority for the future," says Jennifer. “We know that spending money can be a primary motivation to earn, and it’s great to pay for certain essentials and even the occasional treat. But why not pay their future selves first?”
In 2021, kids and teens who used Greenlight to manage their money saved a total of $91.1 million toward specific goals like a car, college, and a computer.
Jennifer says the longer investments have to grow, the more money teens will have in the future.
Take this example of how investments compound over time. If a teen invests $150 per month starting when they are 16 years old, with an 8% annual return, they can watch it grow to $1 million by the time they are 65. And surprisingly, the $150 they set aside each month equals less than $90,000 of that. Waiting just five more years — until the age of 21 — to start $150 monthly investing would leave $250,000 less at age 65 without the five-year head start. And only about $10,000 less original contribution!
While the summer is initially thought of as an opportunity for everyone to get a break and relax, there are so many benefits that teens will gain from getting some hands-on business experience. The benefits of working, earning, and saving money over the summer will last a lifetime.
