Life lessons in juggling school and work
THOMAS Costello is only 16 but he’s already built a healthy rainy day fund.
The Year 10 student works in the deli department at Coles – his third job since having a paper round at the age of 13. Each week he saves 90 per cent of his income.
“My first pay made me realise that if you put in effort, you get benefits,” Thomas said.
“Initially I spent my money on electronics but for the past two years I’ve saved most of my income. I’d like to look into investments and index funds to make my money work for me.”
A four-hour Coles shift earns a 16 year old $56, and Thomas is one of many thousands of students who juggle the classroom with a job.
ASIC MoneySmart’s senior executive leader, Laura Higgins, said jobs during school years were a way for young people to develop money management skills. Parents can also help children get to grips with finances.
“Parents teaching children about money and showing them how to budget, spend and save can establish good money habits for life,” Ms Higgins said.
“Getting children to manage the money they earn is a great way to foster financial independence, patience and goal setting. Having skills and knowledge to understand financial concepts help young people avoid poor money choices.”
Parents can help their children by showing them how to review spending and start a savings plan.
“Parents can discuss how using your own money is better than using credit, the importance of having savings in case of an emergency, and tracking mobile phone and app spending,” Ms Higgins said.
A Commonwealth Bank spokeswoman said children could open both a savings account and a transaction account, to encourage saving while still allowing access to money when needed.
“There are also a range of digital options to help under 18s feel in control of their finances,” she said.
Thomas wants to study business information technology at uni and also has a financial goal.
“I want to work through university to get a jump start on saving for a house,” he said. “House prices are pretty crazy and the earlier I start saving, the better.”