What Youth get out of Work Placements - Part 1: Money

Work placements are a crucial part in developing a youth's confidence and self-sufficiency. Other than the financial benefits and employment skills they gain from working, they can find growth in many other aspects of their life. The less direct benefits they can leverage from working are the ones which they can carry with them and build on for a lifetime. In a short series, I will cover 3 benefits which stand out the most to me.

A crucial component of the work placement is the exposure youth get to money. Having spending money is the obvious bonus, but there are other important financial lessons that come with receiving a paycheck.

Budgeting

An important skill that comes with that first paycheck and continues on into adulthood is budgeting. When youth get their first paycheck, they are presented with a decision: to spend or not to spend. Making the right financial decisions comes with acting out of logic rather than the heart's desire for immediate gratification. Youth cannot practice this until they are receiving a steady source of income, and it's better to start early, as it takes time to learn. They can be taught many different budgeting strategies, however, it is time and practice that will help them gain these skills. Even just picking up good habits in order to meet their budget, like eating the food at home rather than buying fast food, will likely show them that budgeting is a simple practice, but comes with discipline. 

Financial Literacy

Having a job gives exposure to many aspects of financial literacy. Payroll teaches them that they have to wait to receive the money they’ve earned. They need to be patient with their spending and can’t make purchases if they don't have the funds in their pockets yet. There’s so many  pieces of financial acumen to pick up along the way; Learning to navigate their bank account. Using a bank card. Getting a credit card. Overcoming the disappointment of taxes being deducted from their pay. Filing their taxes. The ups and downs of investing. None of this important knowledge would be accessible without getting a first job and paycheck.

Becoming Financially Independent

Lastly, earning money gives a feeling of accomplishment and sparks inspiration; wanting to do more to earn more. When they realize that they can make a living for themselves, they may feel motivated towards their self-sufficient future. Maybe they’ll want to go down the career route and pursue a higher education or get more training once they realize the freedoms that come with a paycheck. Financial freedom, no matter how big, opens the door to a world of opportunities. 

- Clare, Co-op student