Smart Money Moves: A Teen's Guide to Financial Freedom After Landing their First Job
Do you remember your first job? I do. I remember I couldn't wait to turn a certain age to start working. I was a deejay for a local kid's event center. I would spin the latest Kid's Bop tunes for five and six-year-olds. I was the dedicated hype woman, and it was so much fun.
First jobs can be daunting for a young person. One must prepare for the interview, choose the correct position, read their bank statements, be disciplined, and, the best part, get paid!
When I worked my first jobs in high school, I knew how to hustle to make and save money, but I didn't quite know how to manage or even grow my money. I was a GS-4 (Government Service Civilian), making a yearly salary as a 16-year-old. Where is that money? Who knows!
Now that a young person has the job, what happens next:
Bank. Open an FDIC-Insured Bank Account - too often, teens are using CashApp and Venmo; unfortunately, if you do not have a debit card, the balances in these apps are not insured, meaning the money may not be returned if an issue arises.
Try these teen checking accounts:
Invest. Set up an investment account. According to Fidelity, minors can only generally open brokerage accounts in their name once they are 18, so a Roth IRA for Kids requires an adult to serve as custodian. Youth should start practicing investing in themselves; investing 5-10% of their income is a great habit that should continue into adulthood.
Paystub. Understand their paystub. Review their paystub and highlight the taxes, paid time off, and ensure they are correctly paid.
Growth. Seek educational or advancement opportunities within employment. There may be opportunities to attend networks, which could grow their community. Companies may offer scholarships, like Chick-fil-A - (eligible Chick-fil-A Team Members have the potential to receive a $2,500 Leadership Scholarship) or tuition reimbursement. Learning about educational opportunities can be a simple ask during the interview process.
If you know a young person interviewing for their first job, share the steps above with them.
Scholarship Opportunity! Due January 3, 2024.
Lastly, The Taco Bell Live Mas Scholarship is open for 16-26 year olds - The Live Más Scholarship is for students who are pursuing higher education, preparing for the workforce, or using their passion to ignite change in their communities and beyond. Source: Taco Bell Foundation - Send this scholarship to a young person today!