How Gen Z can maximize their summer earnings

The summer job economic outlook is sunny for young people looking to enter the workforce.

More teens between 16 and 19 are working summer jobs than at any point since the 2009 recession, according to Federal Reserve Economic Data. Thanks to a tight labor market in 2023, especially among entry level positions, teens’ wages “were up nearly 40% over 2019 levels, compared to around 15% wage gains in older age groups.”1

These trends mean employers will likely have to increase the minimum wage for entry level jobs to compete for workers, which students can leverage for opportunities beyond babysitting or lifeguarding.

Encourage the young people in your life to expand their options and increase their earning potential by acquiring new skills and building their resumes.

  • Earn college credit by taking summer community college classes or completing College Level Examination Program (CLEP) exams.
  • Consider completing online certifications with video trainings, such as Harvard Business School Online, Khan Academy, or YouTube channels like Study Hall courtesy of Crash Course and Arizona State University.
  • Utilize local libraries, which aren’t just for story time or 3D printing anymore! Teens can skill up with access to LinkedIn Learning courses, coding workshops, or even the library sound booth for recording the next hit podcast.

With extra income from summer jobs, young people can set some money aside for their educational pursuits. To support achieving their long-term goals, encourage them to make small, regular deposits into their my529 account. They may be more likely to accomplish their career goals if they have already financially invested in them, whether the path to those goals be college, technical college, trade school, or registered apprenticeships.

You can incentivize saving by matching their contributions dollar for dollar to their my529 account. For recent graduates or anyone celebrating a special occasion, beneficiaries can utilize my529’s Gift Program to personalize their gifting portal profile and then send friends and family their unique link. The unique gift link lasts for the life of the account and allows for safe and secure contributions from family and friends to the beneficiary’s my529 account.

If you have concerns about work distracting your student from their studies, take comfort that “a 10% increase in average weekly pay reduces study hours by only 2%.”2

Encourage the young people in your life to take advantage of these opportunities to work smarter, not harder, this summer.

  1. https://jobs.utah.gov/blog/post/2023/09/27/utah-s-teen-workforce-earning-more-than-ever-before ↩︎
  2. https://www.nber.org/papers/w32357 ↩︎

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