6 money lessons your teenager can learn from a summer job
There’s a big difference between money you’ve been handed and money you’ve earned. Donovan Brooks, founder and certified financial planner at Storyline Financial Planning, said that a summer job can change your teenager’s perspective towards money, because they’ve worked for it.
“You will spend and treat someone else’s money, that they earned, very differently than the money that you personally work for,” he said. “There is a more personal connection to that money since there was some sacrifice involved.”
According to Brooks, your teenager may get hired for freelance jobs and not see taxes taken out of each paycheck thanks to the gig economy. If this is the case, it’s a good way for him or her to learn how to put money aside for taxes.
“If your teen creates their own job or is contracted as a 1099 employee, they will need to learn and know about self-employment taxes on top of income taxes,” he said.