How Many Hours Should Your Teen Really Work?
Most clients I’ve met with have two reactions when their teen child or grandchild lands a job. The first is pride, and the second is worry about time management and homework. How much work is too little? Too much? It turns out, this question has been researched. I recently came across this article from The University of Minnesota and a few other institutions that have followed this topic for decades.
They found that 10 to 15 hours per week appears to be the zone where part-time work benefits teens without undermining everything else.
Within that range, teens tend to develop stronger time management skills, a better sense of personal responsibility, and a more grounded understanding of money. They learn what it actually takes to earn a dollar, which is a lesson that is very difficult to teach any other way. A lot of research links moderate work experience to higher earnings in adulthood. This makes sense because working is more than just earning a dollar. You are learning how to show up consistently outside your own interest and to deal with difficult co-workers or customers.
However, there are downsides to too much work.
If they work too much
Once a student crosses the 20-hour-per-week threshold, the downsides include -
Lower GPAs
Higher rates of substance use
Social isolation from friends
Not every teen needs a traditional part-time job to get there. Entrepreneurial projects, babysitting, lawn care, freelance work, or helping with a family business can accomplish the same thing.
The Financial Planning Angle
If your child or grandchild has earned income, they are eligible to contribute to a Roth IRA. Even small contributions made in high school can grow significantly over decades, thanks to the compounding math of a long time horizon. The 10-15-hour window also leaves room for that. A teen working reasonable hours can save a portion, spend a portion, and start to get a feel for the tradeoffs that adults navigate every day. That learning just isn’t available at school.
If they want to work, encourage it. If they are already working, keep an eye on the hours!
Happy Planning,
Alex
This blog post is not advice. Please read disclaimers.