Your child's first job
Your child will learn to:
- understand his or her rights as a worker
- read a pay slip
- develop sound financial habits
- save money systematically
Activity summary
For teens ages 15 to 17
Who doesn't remember their first job? Entering the job market is an important transition. Your child must be looking forward to his or her first paycheque.
A new job will help your child acquire new skills and provide exposure to a new reality. Help your child learn about sound personal financial management and how to avoid the pitfalls of poor money management while fully benefiting from the fruits of his or her labour.
Your child is now able to understand a pay slip, draw up a first budget and compare the value of saving with the value of effort put in at work.
First job, first paycheque, first major responsibility! Your child has matured and is on the way to financial independence but will still need your guidance during this new experience.
Entering the job marketWork is not school. The rules are different, as are the work and expected behaviour. There are lots of new things to discover and learn.
Developing good budgeting habitsWith the first paycheque comes the first budget! It's time to lay your cards on the table and talk about money, projects, goals, plans and spending.
Understanding the importance of savingAdopting good saving habits early is the key to future success.
Before the job search
Here are a few points to consider:
- Quick tips
Travail et études : comme parent, quel rôle peut-on jouer auprès de son enfant?
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1. Work schedule
How many hours will your child have to work per week? Will he or she be able to balance work and school while staying healthy?
Generally speaking, high school students should work no more than 20 hours a week. But in the end, it's up to you and your child to decide the number of work hours allowed.
2. Working conditions
What kind of job will your child have? What tasks will it involve? What is the hourly rate? What are the working conditions?
Does your child know that:
- training time must be paid?
- he or she is entitled to 1 day off or financial compensation for legal holidays?
- coffee breaks must be paid?
3. Commute
Work means travel. Has your child taken this into account?
Examples of questions to ask:
- How much time should you plan to get to work?
- When does your shift end?
- What means of transportation will you use?
Once your child has a job
Work is a new experience. Your child will not only have to learn how to work in a new environment but will also have to start managing his or her finances. Here are some points to look over:
1. Understanding payslips
Your child must be so proud having finally received his or her first paycheque! How does he or she feel (e.g., proud, free, independent, etc.)?
Deciphering the information- Mandatory contributions: federal and provincial taxes, employment insurance, the Québec Pension Plan, etc. Some employers deduct small sums for the social committee, uniform, etc.
- Other contributions: group insurance, pension funds, social club, gifts, etc.
- Gross and net pay.
- The 4% vacation pay all workers are entitled to every year.
- It's a good idea to keep track of the number of hours worked each week.
- Make sure the hours recorded on the pay slip match the hours worked. Errors can creep into pay stubs, particularly when the number of work hours varies.
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Making a budget
2. Drawing up a first budget
There's no better time to draw up your first budget than when you start receiving a regular paycheque. It's crucial that your child draw up a realistic budget to meet his or her saving and spending goals and fully benefit from the fruits of his or her labour.
Discuss your child's plans- What does your child want to buy as a treat with the first paycheque?
- How much does he or she want to save or spend?
This discussion is important to help your child clearly understand the benefits of saving, particularly if he or she plans to make a major purchase, like buying a car or saving for an education or a first apartment.
Planning spending- Help your child plan the money he or she will spend until the next paycheque.
- Encourage your child to put some money aside for future projects.
- How many hours will your child have to work to buy a good (e.g., car) or a service (e.g., driving lessons)?
- Your child will realize very quickly that it's much easier to spend money than it is to earn it.
3. Understanding the importance of saving
Saving isn't easy, but it's rewarding.
- Help your child save money systematically by depositing a fixed amount per paycheque in an account.
- Many financial institutions offer services like automatic transfers to a savings account.
- Your child will begin to put money aside for something that means a lot (e.g., driving lessons, buying a cell phone or a car) and, if he or she spends more than planned, it will take longer to reach the goal.
Financing methods
There are many methods a child can use to make money to finance an activity or a purchase. Whether you're a parent or teacher, here are a few ideas you can discuss with your child, depending on his or her talents and interests.
Group financing
To finance a school activity, children can sell calendars, coffee, or pens, collect empty cans, etc.
Individual financing
To make money for personal purposes, your child can sell homemade cookies or cakes, handmade scarves, hats or mittens, lemonade, jewelry, toys he or she no longer plays with, etc.
Your child can also sell services:
- child or animal care
- washing windows
- shoveling snow
- mowing grass
- washing cars
- running errands for elderly people
- household tasks
- gardening
- newspaper delivery
Talking to your child about money
Games: a great introduction to money management
Teaching children the ins and outs of money management is no mean feat regardless of age. In fact, imparting a solid financial education takes lots of determination and patience. So what's the “right way” to talk to your child about money? It turns out playing games can be a good way to start.
In addition to acting as a conversation starter, games can be a fun and natural way to learn new things. They encourage the development of new skills, allow for the expression of feelings and give a taste of what adulthood holds in store.
Try games that use play money, such as Monopoly, and do your best to let things unfold naturally. Sit back and watch how your child acts with small and large sums in hand—and be sure to ask lots of questions as you go. For example, ask how it feels to pay rent on a property owned by another player, or about your child's strategy for purchasing properties as the game progresses. You're sure to spark discussion on the role of money in day-to-day life—and you'll likely be surprised by what you hear.