The Pew Research Center’s latest data found that approximately 37% of Americans between the ages of 16 and 19 participated in the U.S. workforce in the summer of 2022, the highest rate of employment for that age group since 2008.
As long as your older children are eager to earn their own money, opportunities abound. If your teenager is ready to work and you’re on board, here’s what they need to know and do.
First, There are Legal Considerations
As per the U.S. Department of Labor, federal child labor law restricts the employment of minors under the age of 14 in nonagricultural occupations and limits the hours and types of work that can be performed by minors under 16.
Those under the age of 18 are prohibited from working in any hazardous occupation. These include jobs such as fire fighting, mining, demolition and roofing, and performing such duties as driving a motor vehicle and working with power-driven woodworking tools.
The intention of these restrictions is not just to keep kids out of harm’s way — it also is aimed at prioritizing education.
Pay attention to state laws, too. Teenagers may need employment certificates or work permits that can be issued through school districts with parental consent. If there is overlap between federal and state labor laws, the most protective law applies.
Second, Teens Need to Learn How to Manage Income
Once your teen does start to make money, it’s important that they learn to manage it.
A good idea is to spend some and save some for short- and long-term goals. Perhaps your teen wants to dip their toe in the investing pool and buy some stocks, or maybe they want to start saving for retirement (you’re never too young) by opening and contributing to a Roth IRA.
It’s so important to teach kids about money so they can become savvy financial adults.
Good ‘Real’ Employment Options for Teenager
So, what are some jobs that a teenager can get? Many, says Jennifer Seitz, a certified financial education instructor and director of education at Greenlight, a money and safety app for families. Teenagers who are at least 14 may want to pursue positions like:
— Restaurant and fast food server or cashier.
— Cafe barista.
— Supermarket bagger.
— Retail store staff.
— Summer camp counselor.
— After-school tutor.
— Movie theater ticket seller.
Older teenagers, especially when they’re at least 18, can expand their lists of possibilities, though some jobs may require more training and certification. Here are some examples:
— Lifeguard.
— Customer service representative.
— Delivery driver.
— Construction worker.
‘Be Your Own Boss’ Jobs for Teenagers
In addition to taking formal jobs, teens can work casually. For example, they may offer services on an as-needed basis to people in the neighborhood, such as:
— Babysitting.
— Housecleaning.
— Lawn care.
— Pet sitting.
— Dog walking.
— Car washing.
— Watering plants.
— Running errands.
— Tutoring and coaching.
— Photography.
— Technology assistance.
To secure these informal jobs, teenagers can put posters up around the community and upload their availability to platforms like Nextdoor. Just make sure they don’t supply too much personal information and that you vet the people who hire them, especially if your children are underage.
If you’re not familiar with the people they’ll be working with, meet with them first and get all their contact details.
Teenagers can also start a real business, which may grow out of the gig work or from their interests.
“They can research and then make a business plan that explains the product or service, the market, their plans for where and how to sell it — and also the financial details like how much they’ll charge, how much they expect to make and what their profit will be,” Seitz says.
That’s what Dom Pecora, from Malvern, Pennsylvania, did. When he was 10 years old he asked his mother to buy him an expensive mountain bike. She said no. Undeterred, Pecora decided to earn enough to buy it himself by fixing bikes for people in his neighborhood.
“I liked doing it,” Pecora says, who is now 14. “It was during the pandemic and I had the time. I let people pay what they wanted to in the beginning.”
Pecora not only made enough to buy the bike he wanted, he turned the venture into Dom Fixes Bikes, a nonprofit organization from which he draws a small salary. He has a storefront for the repair work and sets a portion of the revenue aside so he can donate bikes to people who can’t afford them.
Because Pecora is a full-time student, he has a mechanic coming in to do some of the repairs, enabling his business to run from 9:00 a.m. to noon, six days a week.
What Should Teens Expect When They Hit the Job Market?
“Teens who are ready to start working should prepare for both opportunities and challenges,” Seitz says. “On the positive side, entry-level positions in food services, retail stores or nonprofits are often available for teens with little to no previous experience.”
These jobs can be a great starting point to gain transferable skills around time management, organization, customer service and teamwork. However, teens may encounter high competition for jobs during peak hiring seasons, so it’s best to apply early.
Before applying for positions, they’ll need to understand how to complete an application, create a resume and behave in an interview.
“On top of that, balancing work and school can be difficult at first to juggle,” Seitz says.
“All of these require them to adapt, adjust, learn and reassess regularly. But starting to build a good foundation and work ethic early will serve them as they progress in their future careers,” she adds.
[How to Talk About Money With Family — and Why It’s Important]
Tips for Teens Working With a Boss, Other Employees and Clients
No matter what type of work teenagers do, it’s almost guaranteed they will make mistakes.
According to a 2023 Gallup-Amazon study, 60% of young adults received little or no career education when they were in middle and high school, and of those who did receive it, most rate it as having been only “fair” or “poor” as opposed to “excellent” or “good.”
You can set your kids up for success by emphasizing the following:
— Responsibility. Explain the importance of being on time and staying for their full shift. “Their supervisors and coworkers are depending on them to complete tasks and meet deadlines,” Seitz says. “Managing their time and holding themselves accountable for their work quality will build a strong foundation of trust in their workplace.”
— Reasonable financial expectations. Your teenager may at first resist working a low wage job. Help them get over their resistance. “While jobs accessible to teens can often be paid the minimum wage or modest pay, they provide valuable experience and learning opportunities,” Seitz says. “Work with your teens in researching statistics on local compensations for similar roles and help them build realistic ranges as they fill out applications.”
— Get something out of every job. Some of the skills your kids will learn while working aren’t obvious. They are often things like being able to get along with people they don’t particularly like, fighting boredom or doing unpleasant tasks, waiting for a couple weeks to be paid and dressing and acting professionally. “You learn a lot of lessons,” Pecora says. “Sometimes I get really frustrated so I take a break. I come back with a clear, open mind. Problems are solvable.”
What Teenagers Need to Know About the Money They Earn
One of the first tasks teenagers should take on after getting a job is to open a bank account. With it they can save for future goals, make safe deposits and withdrawals and learn to manage their incomes. “The teen years are the golden years for saving and investing,” Seitz says.
[Important Financial Goals for Teens]
“We know that spending money can be a primary motivation for teens to want to earn, and it’s great to pay for certain essentials and even the occasional treat. But why not pay their future selves first? Teens can take advantage of this early income and save a majority for the future,” she adds.
To inspire your teenager to save and invest even a little on a regular basis, throw some numbers at them. Adding $100 a month to an investment vehicle earning 6% a year starting when they’re 16 could “magically” turn into almost $7,000 by their 21st birthday.
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How to Make Money as a Teen originally appeared on usnews.com
