A Teenager's First Job

Learning About Money

by: Cleo Hamel
teenager's first job

My girls landed their first jobs this month. It was a major step. Now with teenagers, it’s important to encourage accountability, responsibility, and a solid work ethic. When I was in high school, I worked for my parents' business and learned the value of hard work. But as I sat in the parking lot on my girls' first day, it felt just like leaving them at kindergarten.

Alexa (15) and Michela (16) completed their training at our local McDonald’s without issue. In fact, they were quite enthusiastic about their new jobs. It helps that McDonald’s has a strong training program, but they still expect you to have a clean uniform every shift, read the work schedule, and show up on time. All good lessons to learn now.

Jobs also mean money, and when I started my career in the banking industry, I laid out some ground rules before the first paycheque arrived. Both girls have committed to saving half of their paycheques for post-secondary school. My husband and I will contribute, but we expect our daughters to pay for their schooling, as well.

I have encouraged both girls to keep track of their hours on their own, so they can compare it to the information on their pay slip. They were not asked to complete a TD1 Form, which is usually standard for anyone starting a new job—it is used to calculate the amount of tax withheld from a paycheque. I have inquired about the form, but I suspect it is because their paycheques will be small.

I doubt either will earn more than $10,000 in 2012, so they will not pay income tax, but they will need to file a tax return next year to report their income and claim back any income tax that was withheld. It may not be a huge amount of money, but their first jobs will start building RRSP contribution room, which they can use later. I know the word “retire” is not really in their vocabulary now, but it is never too early to build RRSP room, even if they cannot actually contribute yet.

The girls are learning how to prioritize their time and make plans. It’s good for them to learn that now, before life gets even busier and more complicated. After all, one day they’ll be dropping their own children off at their first jobs, and, hopefully, they will pass these lessons on to them.

Category: 
Teens
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teaching teens about money
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cleo hamel
Cleo Hamel

As a Senior Tax Analyst, Cleo Hamel brings a wealth of financial and tax experience to the Tax Advisory at H&R Block. In her role, she is part of a team responsible for ensuring H&R Block tax associates are informed and trained on all tax laws as well as providing commentary on tax-related issues.

She is also the national spokesperson for the Tax Advisory at H&R Block and has been interviewed across the country. From explaining how the Federal Budget impacts Canadians to having fun with Gerry Dee on CBC’s The Hour, Cleo enjoys the opportunity to provide straightforward information about taxes.

Cleo joined H&R Block in January 2000 as a tax associate and was steadily promoted within the organization. She was a tax course instructor, an Assistant District Manager and District Manager before taking her current position in 2006.

Prior to joining H&R Block, Cleo was an independent financial advisor with a broker’s license in the Calgary area.

She attended the University of Calgary and studied French, Italian and Spanish with a minor in Business and is fluent in French and Italian. She continued her education with the university and completed her Management Certificate in 1994.

Cleo currently lives in Calgary with her husband of 19 years and their two daughters, aged 16 and 15. They also share their home with six year old Bear, a Husky Chow mix.