This may sound far-fetched, but it seems that teenagers are coming to the rescue.
Because of the pandemic, the United States is trying to recover from a year (and then a few years), and employers who have been struggling to seek help for their businesses find that young people are filling these roles. Most of the work seems to be in the retail and hospitality industries.
There are many theories about why it is difficult for retail, restaurant and bar owners to find workers, some of which are based on data, and some are based on conjecture and politics. Regardless of the reason, companies that opened quickly on a large scale are scrambling to seek help.
Some offer signing bonuses and higher salaries. Just like this, teenagers can make more money-in addition to signing bonuses, up to $17 per hour.
To make this good news even better, some employers are lowering the minimum age for applicants.
For example, some water parks allow applicants over 15 years of age to apply, providing opportunities for those who may have to wait a few more birthdays in the past. Some even provide faster ways to submit applications, giving teenagers the opportunity to use their smartphones to fill out forms.
4 Strategies for Your Teens to Save Money
When your child is taken aback, it may be a good idea to talk about how they will handle the excess cash. Of course, they can spend some money on interesting things, but set aside a certain amount of money for bigger expenses such as cars, college tuition and even retirement accounts. With your guidance, they can start financially in the right way.
Here are some tips on how to save money during your teenage years.
1. Achieve short-term and long-term goals
If you haven’t talked to your kids about spending money and saving money, now is the time to do so. With a higher salary, your child may want to spend all the money or feel lost in figuring out what to do with the extra cash.
First, you can show them the difference between short-term, long-term, and even mid-term goals. Then, let them know what is important to them and prioritize spending and saving in this way.
For example, if your child really wants to buy a car, let them look at the price of the car, insurance, and monthly gas bills.Talk about what is important and how much money they need to set aside each month (aka Avoid excessive debt From high car payments).
Retirement may be too far away, but for many teenagers, saving for college is a reality-it is an excellent opportunity to discuss long-term goals and how much money is needed to achieve them.
Once you help them set their goals, you can view the products and services that can help your youth achieve their goals. In this way, you lay the foundation by teaching them how to develop good money habits related to them.
2. Prevent them from opening any old bank accounts
Opening a checking or savings account is great (your kids do need somewhere to send their salary), but opening one at a local bank may not be the best option. There are many options to give your child a chance to earn interest.
In fact, talk to them about the miracle of earning interest (hello, free money!) and how much difference it can make by depositing cash in a high-yield savings account. You two can sit down and compare how much your child can save by simply depositing money in different accounts.
For example, the income of a traditional bank account may only be 0.05%, while the income of an online bank account like Varo is at least 10 times this number. In addition, your child does not have to worry about monthly fees or reaching a minimum balance.
3. Let them choose their stocks
Investment can be fun, but you and I know it can also be boring, especially when it comes to increasing wealth in the long run. To encourage your children to invest, you can first show them how they can turn their salary into tens of thousands of dollars due to the power of investment.
Remember the miracle of earning interest? Show them the true effect of compound interest on their money, and you might surprise them.
To make it more interesting, you can ask them to invest in individual stocks. More specifically, fractional shares of stocks because they are cheaper and your child can choose more. Open an account together like the one provided by Stockpile, giving your children the opportunity to check their account and see how their fractional shares are performing.
The good news is that Stockpile also provides ETFs to help them diversify their investment portfolios.Besides Roth IRA account If your child is more willing to get more choices through a brokerage account. You can explain to them why diversification is a potential saviour, especially if they are worried about losing all their money from a stock.
4. Talk about the advantages of automation
When someone or something automatically does something good for us, who doesn’t like it? This is where the financial application comes in.
If your children find it difficult to save even a small portion of their salary, please show them how the app chimes And Qapital and how it helps them set goals and automatically helps them save.
Qapital is interesting because it allows you to set savings goals based on behavior, such as depositing a few dollars into a separate savings account every time your teen walks to work.
Or with Chime, your kids can own it so that every time they make a purchase, the app aggregates their purchases and sends the difference to a separate savings account.
Teach your young people how to save money Being a teenager is easy (we dare to say it’s fun), as long as you lay the right foundation. Make sure it is tangible, relevant, and you give them the autonomy to choose their own money-saving methods. Both of you will be surprised at how many there are in their accounts.
Contributor Sarah Li-Cain is a personal finance writer living in Jacksonville, Florida, specializing in real estate, insurance, banking, loans, and credit. She is the host of the Buzzsprout and Beyond the Dollar podcasts.