Jamieson Mackay, Sr VP Marketing & Business Development
My daughter turned 15 recently and decided that this Summer she would get a job as a lifeguard to earn money for a new phone. I must say, that made me a super proud dad. Not just the initiative to get hired, but setting a savings goal is something we talk about often. It’s nice to know she’s listening.
So after a few days of working, it was time for the first paycheck. Her excitement about her first paycheck faded a bit when she noticed the amount was a bit lower than she was expecting. Yes, this was her introduction to taxes.
My wife and I decided that this was a great teachable moment, so we explained the different taxes that come out of your paycheck and how next year in February or March she’ll have to file her taxes with the IRS. We told her that she will get a refund on some of the Federal Income tax, but not the Social Security or Medicare taxes paid.
Another thing my wife insisted on was that at least 10% of each paycheck be put into savings at the time of deposit. It’s a rule my wife & I live by and are trying to teach our daughter. She has been really good about keeping up with her student checking account and using the mobile app to check her balances before making any purchases. But if she wants that shiny new phone, she’ll have to save at least 10%, if not more.
The main point in all of this is that you need to have open communication with your teens about money. Once they start earning a paycheck, it gives them a greater appreciation for all you’ve done for them over the years and hopefully gives them a greater appreciation for money. Without any discussion about the subject, you’re relying on your teen to make wise decisions. As I wrote in a previous entry, those wise decisions did not come naturally to me and I had to learn the hard way.
When you log into your online banking, you now have instant access to your credit score and credit report, along with personalized tips on how to improve or maintain your score.
A few tips to get you started:
Every child dreams about their future. Some of those dreams may require money to come true. How do you help your children achieve their dreams? One way is to help them learn how to save their money.
Saving your money isn’t always easy, especially when you don’t have a lot to spare. After paying all your usual expenses, there may be very little “fun” money at the end of the month. When we do find ourselves with some extra cash, like a tax refund, many of us rush out to buy those shoes or that electronic gadget we’ve been eyeing for months instead of putting it into our savings.
Congratulations, you’ve helped your high school senior successfully navigate almost 12 years of school. Once they graduate, they will begin a new chapter in their lives as young adults and either continue with school or enter the workforce. Either way, you can help them make sure they are well prepared financially.
Every parent’s dream is for his or her child to grow up healthy and successful. Being successful doesn’t happen over night, it takes years and years of practice and instilling the correct behavior, whether that be saving habits, morals, work ethic, etc. Starting these habits at a young age can help your child in the future.
As consumers step up their online shopping leading up to the holidays, it’s a prime time of the year for identity theft. While you are busy snagging hot deals on Black Friday and Cyber Monday, thieves are phishing for your information.