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Nathan's monthly newsletter is designed to help you think, talk and teach about money using the Share Save Spend philosophy. Printing and posting the column in a visible place like the refrigerator door, office or classroom can be a great way to stimulate money conversations with your family and friends.
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| Summer Jobs: Invaluable Life Lessons |
It’s time for a walk down memory lane. Do you recall any of the summer jobs you had as a teenager?
During my early teen years I split my time between entrepreneurial activities (e.g. lawn-mowing business) and working for “the man” (neighborhood paper-boy). In both instances, I learned a variety of lessons that are still paying dividends today.
From that early entrepreneurial venture I learned about marketing, pricing, competition, customer service, purchasing (fuel and equipment), productivity (one kid can only mow so many lawns) and external risks (bad weather can really mess with your productivity).
As a paper-boy I learned there was a direct correlation between timely delivery, a dry newspaper and how much I earned in tips. I also learned that delivering the extra-thick Sunday morning paper with a push-cart during a blizzard was a total drag. Chalk one up for determination!
In our family like in most others, working, especially during the summer months, was an expectation. In fact it was prioritized above other extra-curricular activities like sports, music and hanging-out with friends. Bottom line, summer jobs played a huge role in teaching me and my siblings a variety of life lessons.
According to the Bureau of Labor, the number of teens working nationally has been on a steady decline. In June of 2000 about 52 percent of 16- to 19-year-olds were working or looking for work. By June of 2006, when the economy was still healthy the rate had dropped to 44 percent – an odd trend to be sure.
More recently, leading colleges in the U.S. are asking about work experience as part the application process. In twenty years of working with families on a variety of personal finance issues I have learned that nothing trumps the value of a summer job.
To be sure, this economy means a more challenging job climate for teens, but with a little ingenuity and a healthy dose of determination they too can experience all the wonderful benefits of having a summer job.
One Share Save Spend Idea:
Many teens have talents they can leverage into money-making ventures. Here are a few ideas to help you get started:
1. Do an inventory of their skills. Pay particular attention to the skills that might have unique value in the marketplace (e.g. tech skills)
2. Create a mini-business plan to address the following: realistic cost of entry (e.g. lawn-mower); creative marketing strategy that takes into account product, place, price and promotion; competitor analysis (who else is out there); and revenue projections (gross vs. net profit)
3. If they have business partners be clear on how they’ll divide the costs, the work and the profits
4. Network with other teens who are successful entrepreneurs
Money Talks: One question for teaching about money
What benefits can a teen derive from having a summer job?
Gotta Have It Now WOW!
For the year, teen spending on clothing is down by 14 percent from 2008.
Source: Piper Jaffray “Taking Stock with Teens” Survey
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