Right or wrong, I had my first job at 15 years old. I vividly remember the walk to work and the $6.00/hour pay I received for grilling hot dogs, frying fries and making Italian Beef sandwiches for 400 lb. customers.
Back then I might have brought in $120/week by working all day Saturday and a couple of night per week after school. So with roughly $400 per month to spend, what did I do? I spent $400.00 on crap.
Looking back, my parents had an opportunity to teach me some valuable lessons. They didn't, so by the time I was 18 I had roughly $15K in credit card debt, no savings, and no plan. When my kids (I have 2) get to that age (actually younger), here are the lessons I plan on teaching:
My kids are young so I have a while and I am sure this list will grow 10-fold by the time they know what I am talking about. Point is, without guidance, most kids will simply spend like I did. I got out of debt eventually by busting my butt but that's another story and not fun.
- Jay
Back then I might have brought in $120/week by working all day Saturday and a couple of night per week after school. So with roughly $400 per month to spend, what did I do? I spent $400.00 on crap.
Looking back, my parents had an opportunity to teach me some valuable lessons. They didn't, so by the time I was 18 I had roughly $15K in credit card debt, no savings, and no plan. When my kids (I have 2) get to that age (actually younger), here are the lessons I plan on teaching:
- $6.00/hour is crap. Be on time and respect your boss, but you are not there for the money. You are there to see how he runs a business. The money is a side benefit.
- I will buy you anything I can, but you are paying for 50% of it (unless it's clothing or other necessities) so let's sit down and plan how you will save.
- Learn how to talk to customers and strangers. Then appreciate the conversation because this life-skill is more important than $6.00/hour.
- List out your budget - what do you typically spend money on? Then sort by need and want. If you are saving for a car when you turn 16 or 17, replace some of those wants and increase the savings %. (NOTE: before anyone jumps on me because there is no way to save for 50% of a decent car at this age, remember that there is birthday money from relatives, gifts, etc. I was given a new car and it didn't help me out any).
- Let's view your progress every 2 weeks to be sure the system is working and that you are happy with it.
- Try multiple things. It's easy to get a part time job so jump around a little. While it's commendable to have a single job for several years, try several different industries to start determining what your real interests are.
- Come with me to work and watch me (I never got to do this with my Dad and I probably would have learned something).
- Let's plan something major. Dad has a rental property or 2 so save some money and let's buy the next one together. You should experience money growing without punching a clock.
- I am not forcing you to do anything. I respect that it's your money. If you choose to blow it all on crap, do it immediately so you can quickly understand responsibility and the ramifications. You will learn by making bad choices (plus I don't want you doing it when you're 25).
- You should do your own taxes to learn what it's about (until you have to itemize).
My kids are young so I have a while and I am sure this list will grow 10-fold by the time they know what I am talking about. Point is, without guidance, most kids will simply spend like I did. I got out of debt eventually by busting my butt but that's another story and not fun.
- Jay
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