Landing a first job can be a very empowering experience for a teenager. Paid work can teach teens independence, personal responsibility and even time management. As a parent, it’s important to also offer support in tangible ways that help them make the best of this new opportunity. Here are a few things you can do when your teen gets their first job.
Help them set up a bank account
How your teen is paid may depend on the job they’ve taken up. For instance, babysitters, tutors, or dog-walkers may get paid in cash while fast food workers might get paid via paychecks or direct deposits. Either way, it helps teens to have a bank account to deposit their money into. A checking account for day-to-day use is a must, but some teens may also benefit from a separate savings account. This is one way to encourage savings for college. Some parents may already have a 529 college savings account or intend to utilize the cash value of a whole life insurance or universal life insurance policy – but encouraging teens to build savings of their own may help them feel like they’re contributing to their education.
Support them with time management
A job may require your teen to reschedule and re-order some of their priorities. They may need to balance school, extracurriculars, work, and rest for the very first time. You can help them out by teaching them to create a daily routine that accommodates their new responsibilities. Early on, they may need prompting and reminders to stick to their schedule, but teens will gradually fall into their new routine. At this stage, punctuality and time management are crucial, so encourage them to use their time wisely. Look out for signs of stress and fatigue and encourage open conversation about their responsibilities.
Help them develop professional skills
A teen working their first job has a lot to learn, and parents can teach from experience. Suggest professional outfits (if needed) and encourage good communication with colleagues, clients, or customers. Talk to them about the importance of having a can-do attitude while maintaining healthy professional boundaries. You likely have plenty of insight to offer, but you’ll need to strike a balance between providing useful suggestions and offering a listening ear.
The bottom line
A teen’s first job is a major milestone that can have a positive impact on their life. Parents can contribute by imparting financial and professional tips when needed. Creating a bank account is the first step, but small investments and conversations about taxes and long-term savings may follow. You can also show your support by simply offering a listening ear when your teen needs it.
The primary purpose of permanent life insurance is to provide a death benefit. Using permanent life insurance accumulated value to supplement retirement income will reduce the death benefit and may affect other aspects of the policy.