For many teens, there's nothing more exciting than receiving the first paycheck from a summer job -- a sure-fire ticket to fun and freedom. It's also a great opportunity for parents to encourage proper money management.
Parents or guardians need to do some necessary paperwork first. Working teens will need his or her own Social Security Number (SSN) to legally apply for a job. They will also need a SSN to open a bank account to deposit their paychecks.
Depending on state law, children under 18 may have to open bank accounts in their custodial name with their parents or guardians. It is also important for parents to check in with qualified tax or financial advisors about their teen's earned income, particularly if it may affect any investments under the child's name.
After that, it's about encouraging teens to get a jump on their job search. The recent job market for American teens has been tough and investigating particular kinds of openings should start months in advance of summer hire.
Networking is also important. Teens can reach out to friends, neighbors and other trusted adults about potential jobs in the community. Also, it is never too early for teens to learn resume writing and job interviewing skills. The Practical Money Skills website's Landing a Job (http://www.practicalmoneyskills.com/personalfinance/lifeevents/work/landingjob.php) page offers useful background to help teens get started.