Tips for kids picking up summer jobs

KIDS ARE KEEPING BUSY AND EARNING SOME EXTRA CASH WITH THE SUMMER JOB. AND FOR MANY KIDS, THIS IS THE FIRST TIME THAT THEY’VE EARNED THEIR OWN MONEY. SO IT IS IMPORTANT FOR FAMILIES TO TEACH THEM HOW TO BE RESPONSIBLE WITH THAT MONEY. AND TO HELP US BREAK IT ALL DOWN, I’M JOINED BY MEGAN HAMMOND. SHE’S THE DIRECTOR OF FINANCIAL PLANNING AT WEALTH QUEST. MEGAN, THANKS AGAIN FOR BEING HERE WITH US. YOU KNOW, YOU’RE HERE EVERY MONTH TO HELP US GET IT IN ORDER, GET OUR FINANCES IN ORDER. THIS TIME YOU’RE TALKING TO THE KIDDOS AND THEIR PARENTS WHO PICKED UP A SUMMER JOB. THEY’RE PROBABLY VERY EXCITED TO HAVE MONEY OF THEIR OWN, RIGHT? SO WHAT ARE YOUR TIPS FOR WHAT THEY SHOULD DO WITH THIS MONEY? OH, YES. SO FIRST OF ALL, I THINK I THINK PARENTS ALWAYS WANT THEIR KIDS TO BE SUCCESSFUL AND WE WANT TO SET THEM UP FOR SUCCESS. AND A BIG PART OF THAT IS TEACHING THEM ABOUT MONEY AND HEALTHY MONEY HABITS. AND SO I WOULD SIT DOWN WITH YOUR CHILD AND TALK ABOUT THE DIFFERENT BUCKETS THAT WE PUT MONEY INTO. SO WE HAVE OUR SPENDING BUCKET, WE HAVE OUR SAVINGS BUCKET, AND WE HAVE OUR GIVING BUCKET AND WHY WE HAVE THOSE BUCKETS AND THEN HELP YOUR CHILD FIGURE OUT EXACTLY HOW THEY WANT TO ALLOCATE. BECAUSE THIS IS SOMETHING THAT’S LEARNED AND IT’S SOMETHING THAT THEY NEED A PRACTICE WITH. AND SO I THINK WHAT WE NEED TO DO IS GIVE THEM THE OPPORTUNITY TO DO THAT. AND AND SO WE DO THAT BY GIVING THEM A VOICE AND, YOU KNOW, EMPOWERING THEM TO TO MAKE THOSE DECISIONS. I THINK THAT’S REALLY COOL AND A GREAT IDEA TO SET UP A GIVING BUCKET FOR KIDS AND LET THEM KNOW, YOU KNOW, IT’S OKAY TO GIVE TO OTHER PEOPLE OR THINGS THAT MAYBE NEED YOUR ATTENTION OR RESOURCES. YEAH. WELL, WHAT IF THERE IS SOMETHING AND WE KNOW THERE IS ALWAYS, EVEN AS ADULTS, THAT THEY REALLY, REALLY WANT AND THEY WANT TO SPEND THAT MONEY ON INSTEAD OF SAVING IT OR MAYBE GIVING IT TO SOMETHING ELSE. YEAH. AND IF THAT IS YOUR CHILD THAT THEY WANT TO SPEND RATHER THAN SAVE, YOU ARE NOT ALONE. AND IT HAPPENS OFTEN. BUT I THINK WE AS PARENTS NEED TO BECOME COMFORTABLE WITH LETTING OUR KIDS FAIL AND MAKE SOME OF THOSE MISTAKES. AND THAT CAN BE REALLY HARD. BUT IF YOU THINK ABOUT IT, WE’VE HAD YEARS OF LEARNING THESE LESSONS THAT IF I BUY SOMETHING AT THE DOLLAR STORE, IT MIGHT NOT LAST AS LONG AS I WANT IT TO. AND THAT ADVERTISING AND MARKETING MIGHT NOT BE ALL IT’S CRACKED UP TO BE. I MIGHT BE DISAPPOINTED BY THAT PURCHASE, OR I MIGHT HAVE TO SACRIFICE. IF I BUY ONE THING HERE, I MIGHT HAVE TO GIVE UP SOMETHING OVER HERE. WE NEED TO ALLOW OUR KIDS TO MAKE THOSE SAME MISTAKES AND LEARN FROM THAT. AND AND SO IT CAN BE REALLY HARD TO LET THEM DO THAT. BUT IT’S KIND OF LIKE A CHILD LEARNING TO WALK. IT’S A LOT EASIER TO DO IT WHEN THEY’RE A FOOT OFF THE GROUND THAN IF THEY’RE FIVE FEET TALL. AND SO WHAT WE WANT TO DO IS ALLOW THEM TO MAKE THOSE MISTAKES WITH A $20 TOY INSTEAD OF A $2,000 RENT PAYMENT THAT THEY CAN’T MAKE OR A $20,000 CREDIT CARD BILL THAT THEY CAN’T PAY. ALL RIGHT. SO WHAT ARE SOME THINGS? ARE SOME TIPS THAT PARENTS AND FAMILIES CAN DO TO TEACH THEIR KIDS SOME FINANCIAL RESPONSIBILITY AT HOME? I KNOW FOR ME, WHEN I GOT MY FIRST JOB, THE FIRST THING MY FAMILY DID WAS HELP ME TO SET UP A BANK ACCOUNT WHEN I WAS 15 OR 16 YEARS OLD OF MY OWN THAT I CAN YOU KNOW, GET THAT MONEY TO WHERE IT NEEDED TO BE. ABSOLUTELY. THAT’S ONE GREAT WAY TO DO IT. WHAT I WOULD SAY, THOUGH, IS, YOU KNOW, I HAVE THAT SAME EXPERIENCE. I WENT WITH MY DAD AND WE SET UP THE BANK ACCOUNT AND I WAS SO EXCITED. I DON’T KNOW THAT I LOOKED AT IT AGAIN AND I NEVER SAW THAT ACCOUNT GROW. AND SO WHAT WE WANT TO DO IS INCENTIVIZE THAT BEHAVIOR IF WE WANT THEM TO SAVE. AND SO TRY AND FIND AN ACCOUNT THAT HAS A HIGH YIELD SAVINGS ACCOUNT THAT HAS A LITTLE BIT HIGHER INTEREST. LOOK AT IT MONTHLY OR QUARTERLY. AND, YOU KNOW, MAYBE ADD A LITTLE EXTRA MOM AND DAD INTEREST IN THERE OR IF THEY SAVE A CERTAIN AMOUNT, WE’LL KICK IN SOME TWO. SO IT ALLOWS AND IT INCENTIVIZES THAT BEHAVIOR FOR SAVING. I THINK IF YOU WANT TO DO SOMETHING MORE, YOU KNOW, IF YOUR CHILD IS OLDER AND HAS EARNED INCOME, SO INCOME THAT THEY’RE GOING TO CLAIM ON THEIR TAXES, THEY’RE ELIGIBLE FOR A RETIREMENT ACCOUNT. AND SO YOU COULD ACTUALLY CONTRIBUTE TO A ROTH IRA, FOR EXAMPLE, ON THEIR BEHALF. AND THEN YOU CAN START CONVERSATIONS ABOUT RETIREMENT PLANNING AND INVESTMENTS, AND IT OPENS UP A WHOLE NOTHER AVENUE OF CONVERSATIONS TO REALLY GET THEM STARTED AND GET THEM SET ON THE RIGHT TRACK. AND REALLY, IT’S JUST NEVER TOO LATE FOR THESE KINDS OF CONVERSATIONS IN THE WORLD WE’RE LIVING IN WITH EVERYTHING GOING UP, THE COST OF LIVING AND EVERYTHING. MEGHAN, THANKS SO MUCH. WHAT MEGHAN HAMMON WITH WEALTH QUESTS BREAKING DOWN THESE TIPS FOR US AND IT IT’S VERY HELPFUL. YOU CAN ALWAYS GET THESE TIPS ON OU

Money Monday: Tips for kids picking up summer jobs

Updated: 4:25 PM EDT Jun 12, 2023

School is out and some kids are keeping busy and earning some extra cash with a new summer job.For many kids, this can be the first time they have earned their own money, making it important to learn how to be responsible with it.WLWT was joined Monday by Megan Hammann, director of financial planning for Wealthquest, who talked about tips for kids earning summer money.See the full interview in the video player above.

CINCINNATI —

School is out and some kids are keeping busy and earning some extra cash with a new summer job.

For many kids, this can be the first time they have earned their own money, making it important to learn how to be responsible with it.

WLWT was joined Monday by Megan Hammann, director of financial planning for Wealthquest, who talked about tips for kids earning summer money.

See the full interview in the video player above.