We’ve Got Plenty of Money; Does Our Kid Really Need a Summer Job?

It’s one of the rites of summer in much of America: the kids are out of school, but they’re still getting up in the mornings: to hit the lawn-mowing route, to baby-sit for young, working parents, or even to clock in for their internship with a local business. For many young people, the summer gig has been an important source of savings for college, for a first vehicle, or for some other personal financial goal. And many experts see the experience as a vital first step in acquiring skills needed for future, full-time participation in the workforce.

But statistics may indicate that summer jobs are not the priority for today’s college-bound teens that they were for previous generations. According to Department of Labor statistics, only about 40% of teens participated in the labor force during the summer of 2018, down from 70% forty years previously. Not that this necessarily indicates the kids are sleeping late and lounging away their summers; for many, volunteerism and unpaid internships are seen as a way to strengthen college applications. Also, summer camps and other “extracurricular” options may be taking up significant portions of kids’ time in the summer months.

But there are still plenty of benefits for kids to be found in good, old-fashioned summer work. Unlike volunteer work (which is certainly admirable) and similar pursuits, holding down a job in the summer presents opportunities to learn about the discipline involved in earning money, basic financial skills such as managing a bank account, making choices about saving and spending, and other important life lessons that will only become more important when it’s time to begin working full-time. Plus, some teens find their passion in summer work; it becomes an entry point into the business they decide to pursue one day.

One obvious benefit of summer work is the opportunity it can provide for funding a Roth IRA or even a custodial IRA—perhaps more appropriate for younger teens. By putting money to work in a tax-advantaged environment, these accounts also harness the greatest financial advantage of youth: years for the money to grow and compound, potentially providing a solid foundation for retirement or other important financial goals.

But even if we leave aside the financial and aspirational benefits, holding down a summer job also provides learning opportunities for dealing with people in the day-to-day workplace, working as part of a team, taking direction from supervisors, problem-solving, and communicating effectively with those who have different personalities and experiences: all skills that are directly applicable to any future career.

Apart from the usual jobs—yard care and landscaping, baby- or pet-sitting, food service, retail, lifeguarding, counseling at a summer camp, and others—there could be more creative options for the truly ambitious teen with career goals in mind. Apprenticeships or internships at professional offices can be a valuable launching pad. Sure, this may involve the drudgery of working in the mailroom at a law firm or toting pool chemicals for a service technician, but showing up and doing what is asked in such situations can not only be a way to earn money but may also get a young person a good letter of recommendation for their college application packet. And who’s to say that they might not discover a real interest in the business? Similarly, many professional offices are looking for part-time receptionists or phone attendants. Experiencing the rhythm of work in a place of business is good training for any career-minded teen.

Is your teen a whiz in math, science, music, or some other area? Less formal opportunities could include tutoring younger children during the summer. College-bound kids who have already aced the SAT or ACT exams might even find paid opportunities for helping younger teens prepare for these important tests.

For those with significant net worth, it may be worthwhile to explore community and professional connections to see who might be needing some extra help in the summer. This could even offer opportunities for parents to keep tabs on their youngster’s “work temperament” and aptitude through informal conversations with friends and professional colleagues. There could also be mentoring opportunities. Let’s face it: sometimes our kids will listen to another adult voice more readily than their own parent’s.

So, even if money isn’t the main object, working a summer job can be a valuable learning experience for any teen. By learning the importance of responsibility, “showing up,” and following through, they are preparing themselves to be more focused and reliable when it’s time to start their careers.

At Aspen Wealth Management, we understand the importance of financial literacy, especially transmitting it to future generations. Our aim is to provide guidance that improves clients’ lives, whether that means creating a strategy for retirement planning or becoming a financial “coach” for younger family members. To learn more, please visit our website to read our article, “How to Protect Your Children and Their Inheritance with a Trust.”