H&R BLOCK: DOLLLARS AND SENSE

Kelly Whalen, The Centsible Life Courtesy of Block Talk With summer break already in full swing in some areas, and warmer weather fast-approaching in other regions, many teens are looking for summer jobs. While you’ve probably read some basic tips, these tips and tricks will be able to land you the perfect summer job. Make a list of interests and strengths. Many teens jump right into whatever job they can find, but playing to your strengths will make your work more enjoyable and could garner you experience for your future career. While it may seem silly to write out a list it will help you narrow down your choices, and hone in on any special skills you have. For instance, if you have a sport in which you excel, consider being a coach or camp counselor at a camp. These positions will be more enjoyable and may pay better than a typical summer job. Another example, if you’re a peoples person, you can consider a variety of jobs such as server, cashier, retail worker, or even working as a salesperson. Using your people skills may mean earning more tips, or receiving a pay raise.

Consider cash vs. experience.
Most teens want to earn as much as possible…so they have more to spend, but it may make more sense for you to look for experience in your future career field. It’s a great time to try out career paths to be sure it’s what you’re truly interested in before you invest years of education in a field.

Experience pays.
Experience can come from internships, working as an assistant to someone in your chosen field, or even working in a different capacity in that business. This may mean working as a receptionist or filing paperwork, but it will teach you a lot about the business. The time you spend learning now will also look great on college applications – or if you’re in college on job applications. If you are considering a trade – plumbing is an example – it’s an ideal time to reach out to local businesses to help you start learning now. This will allow you to get hands on experience-even if it’s just handing tools to someone else.

Look for high-paying gigs.
If you need cash over experience, look for high-paying jobs. Using physical strength in jobs such as landscaping will earn you more per hour (and help keep you in shape). Having skills other teens don’t can also help you earn more. For instance, competitive swimmers often lifeguard in the summer. After completing a lifeguarding course they are certified and trained, and can demand a higher pay rate than most teen’s typical gigs.

Please tip your server.
One of the best ways to earn extra money is through a job that allows you to collect tips in addition to your regular earnings. Just be sure you choose wisely. Waiting tables may seem like it can bring in a lot of cash, but restaurants pay their servers less than minimum wage since patrons tip. It varies by restaurant, but you’ll want to work somewhere that has a good customer base to earn the most.

Show me the benefits.
There are often benefits or perks for working at some companies. Whether it’s free meals at a local restaurant or gym membership since you lifeguard, those benefits can really add up if you would use those perks anyway. One pitfall to avoid is the ‘employee discount’ which seems like a great idea, but in the end you may blow your whole paycheck.

Make nepotism (or networking) work for you.
The easiest jobs to get are the ones your family members (or friends of your family) can offer. However, it can be a challenge to work with some family members, so consider it carefully. Job hunting is often about who you know, so don’t be shy. If you’re not sure of what to say, try talking about your summer plans or asking for advice about job hunting. While the adults you know may not have a job for you, they may know someone who needs a summer hire. For instance, you may be looking for a summer nanny or babysitting job, and find a family by sharing your availability with family friends.

Now that you’ve got the job, be sure to make a budget for where all that money is going. After all, there’s no use working hard to have no reward at the end!

What advice do you have for teens looking for summer jobs?

Graduation from high school is an exciting milestone, one that celebrates the past and looks forward to the future. As teens plan for the next step after graduation, it’s important to ensure that they understand how finances play many different roles in the choice of an education, job or career path.

This summer, make sure you talk with your teen about these topics:

Helping out in a pinch and answering emergencies big and small is part of parenting, but parents who want to avoid frantic calls from their grown children when they’ve run out of money at college or find themselves drowning in credit card debt can start by teaching financial fundamentals early. Teaching teens basic financial skills in high school will lay the foundation for future success.

Managing money is a life skill teenagers can begin to master so they are well prepared when enticed later by credit cards and high-interest loans. Only 14 states require a course in personal finance in school so parents must teach teens to be smart about finances at home.

“Kids are going to make mistakes with money. It’s easier to help them through these mistakes when your teen is a minor and still lives at home. Teaching teens money management skills before they graduate can help them avoid costly mistakes as an adult,” said Susan Ehrlich, president of financial services for H&R Block, which provides financial education for teens through its H&R Block Dollars & Sense philanthropic program.

The Dollars & Sense team advises parents to start by helping teens learn the following important lessons:

Prepare a budget and don’t spend more than you earn. While this may seem simple, more than half of adults don’t have a budget[i] and 4-in-10 families spend more than they earn each year[ii]. Encourage teens to prepare a budget that includes income from allowance or jobs, regular and expected expenses, and a savings plan. Each month, help them track their expenses and learn tips to stay on budget.

Save now and spend later. Studies have shown people spend up to 30 percent more on purchases when using credit cards instead of checks or cash[iii]. Rather than start with a credit card, have teens open a checking and savings account, then help them develop a savings plan for their next big purchase. Teens should save at least 30 percent of everything they make from allowance, jobs or gifts.

If you must use credit cards, pay in full each month. Nearly half of households carry a balance on their credit cards, with an average debt of more than $15,000[iv]! If your teen takes out a card, help her set a realistic credit limit, then require she pay the balance in full each month. Be sure to discuss interest rates, default rates, annual fees and payment schedules.

Before taking on debt, determine the cost to repay any loans. Two-thirds of students who graduate with bachelor’s degrees have student loans, with the average debt of about $27,000[v]. During your child’s junior year of high school, develop a student loan plan with your teen. Consider how long he will be in school, discuss subsidized versus unsubsidized loans, and use online student loan calculators to estimate his monthly payment after graduation.

Big investments often come with unexpected costs. Homes, cars and other investments come along with a range of expenses that are unfamiliar to teens. If your teens have access to a vehicle, require they play a role in the auto’s payment, insurance and maintenance.

You must pay your bills on time. Defaulting on a loan can have dire consequences – and paying just a few bills late can have a big impact on one’s credit score. Yet, many young adults do not pay their bills on time each month. Teach your teen to be timely with bill payments by tackling the chore together around the same time each month. Getting teens in the habit of a monthly bill-pay day will pay off in the long term.

Funded by H&R Block Inc., H&R Block Dollars & Sense advocates for financial education, provides personal finance curriculum to high schools, and sponsors financial education programs for teens.

Kudos to the Girl Scouts – an institution that has made great strides to increase understanding and action regarding financial literacy in youth. It has recently added financial literacy badges to its requirements. This week, the Girl Scouts additionally announced research on the topic.

The Girl Scout Research Institute conducted a nationwide survey with more than 1,000 girls ages 8−17 and their parents, in an effort to better understand girls' level of financial literacy and their confidence about, attitudes toward and experiences with money.

Having It All: Girls and Financial Literacy reveals that girls need and want financial literacy skills to help them achieve their dreams, with 90 percent saying it is important for them to learn how to manage money. However, just 12 percent of girls surveyed feel "very confident" making financial decisions.

This is another demonstration of the need for financial education in schools. Learn more about the study at girlscouts.org.

What's the craziest thing you've done to save money? Tell your story to be entered to win a $4,000 scholarship so you won't have to do such crazy things to save.

What's the craziest thing you've done to save money? Tell your story to be entered to win a $4,000 scholarship so you won't have to do such crazy things to save.

Presented by DoSomething.org and H&R Block Dollars & Sense

Research shows that when you incorporate laughs into a lesson, it increases retention. With this knowledge, H&R Block Dollars & Sense and DoSomething.org decided to give away more than $30,000 in scholarships for young people who use the "Mind On My Money & Money On My Mind" toolkit to share with their friends three humorous exercises on important personal finance topics.

What's the craziest thing you've done to save money? Tell your story to be entered to win a $4,000 scholarship so you won't have to do such crazy things to save.

Presented by DoSomething.org and H&R Block Dollars & Sense

By: Jenna Bromberg – Block Talk Editor

You never forget your first time. But let’s make sure your first tax filing experience is memorable for positive reasons — and won’t come back to haunt you. Follow these four essential tax tips for first-time filers and you’ll be off to a good start.

The numbers are simply shocking. America needs to improve its financial literacy among teens, as they are our future after all.