7 Financial Lessons A First Job Can Teach

My teenage daughter has her first official part-time job. While helping her fill out her paperwork I discovered that her first job will give her much more than a good work ethic and a paycheck every two weeks. Just having a job will force her to learn quite a few skills useful for the rest of her life.

How to Read A Pay Stub

Everyone should know how to read a pay stub, especially hourly wage workers. Pay stubs show important information such as:

  • Pay period dates
  • Hours worked
  • Hourly wage
  • Net amount paid

Employees should verify this information is correct for each and every paycheck, or they might be shorting themselves money they earned.

Taxes

One of the first things new employees are asked to do is fill out a W4 form to set the level at which taxes are deducted. Understanding the concept of taxes and the different types of taxes deducted help new employees understand how they contribute to the operations of local, state, and federal governments.

Direct Deposit

Most employers prefer to deposit paychecks electronically into their employees’ bank accounts. This requires the bank routing number as well as account number. Knowing how to find this information comes in handy in other situations such as automatic bill payment.

Balance Tracking

I introduced my daughter to the account register and taught her how to add deposits and subtract purchases. By doing do, she will know exactly how much actual money she has available at any time.

How To Write A Check

Checks aren’t used as a form of payment as much as they used to be, but are still used. Teaching a young adult how to write and cash a check are important skills they will use as an adult.

Using ATMs

Withdrawing cash from an ATM is something most adults do frequently. However, to a young person with their first debit card, this process may be confusing. Teaching someone how to use an ATM to get cash, as well as how to avoid ATM usage fees is a must.

Debit Card Transactions

There’s much to learn about that little rectangular piece of plastic we call a debit card. Learning about the electronic chip on many debit cards, when to swipe and when to insert, and how to select a PIN you’ll remember is all part of using a debit card.

My daughter is excited to have her first job, and to finally be earning a paycheck. She had no idea there was so much else to learn.

What do you think, EOD nation, how many of these skills did you learn as part of getting your first job?

About Travis

One Response to “7 Financial Lessons A First Job Can Teach”

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  1. Brian says:

    Things have really changed now since I had my first part-time job. Two of my three children are working and they have never set foot in a ban. They have had direct deposit and debit cards since day one. They manage their money online and via an app on their phones. It’s important to review their pay stubs so the understand their taxes. There can be a bit of disconnect in the digital world.

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