Monday, July 12, 2021

Why Summer 2021 is Perfect for Teens to Begin Building Their Wealth

According to Carmen Reinicke, a reporter for CNBC, 2021 is the best summer since 1953 for teens to start their professional journey. Data released from the Bureau of Labor Statistics showed that the unemployment rate for young adults between the ages of 16 and 19 is 9.9%, the lowest it’s been in over 65 years. Reinicke claims numerous factors may be playing a role however, specifically mentions that due to lingering pandemic effects, older employees may be hesitant to return to the workplace, allowing teens greater opportunities to be hired. 

Aside from allowing teens to get some extra cash in their pocket for summer activities, Reinicke and financial advisor, Tom Henske, list three advantages for getting a job this summer:

  1. Establish a Banking Relationship: starting at an early age, it’s extremely beneficial to encourage teens to open a savings and checking account. These accounts will help young employees understand where their earnings are going and allow early experience using a debit card. 

  2. Make a Budget: emphasized by Henske, summer jobs will help teens learn the true value of money. Especially once kids are expected to cover some financial responsibilities, it will be important for them to develop a budget to track their spending between activities. 

  3. Open a Roth IRA: allowing teens to have access to an individual retirement account, Reinicke explains, is a great way to introduce them to the idea of investing in their future.




To read more, please visit CNBC

Written By: Your Financially Fit Me Team

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