A Few Extra Bucks
MY FIRST JOB DURING high school was bagging groceries at Publix Super Markets. The starting wage was a cool $7 per hour in 2004. That was big money to me. It meant I could work the weekends and a few nights a week, and then buy music CDs on eBay. My 2005 goal was to earn enough to fund a Roth IRA at Vanguard Group.
Today���s teenagers have it better. Don���t take my word for it: The latest wage growth tracker, courtesy of the Atlanta Federal Reserve, shows hourly earnings for the age 16-to-24 group are up a whopping 9.5% from August a year ago. That���s the fastest clip since 2001.
All the chatter about raising the minimum wage to $15 an hour is perhaps having its effect on the private sector. Also contributing to higher pay is the ongoing labor shortage in the service sector. Restaurants, hotels and other manual labor businesses all need more workers.
This may be the best time to be a high school kid hungry for some extra bucks. College students are also licking their chops at an emerging perk���free tuition. Amazon and Walmart recently announced they���ll pay for frontline workers��� college costs. These are very encouraging signs.
Parents can make it even sweeter. Here���s a strategy: For every dollar your child earns, match��it with a Roth IRA contribution. By opening and funding Roth IRAs for your children, you set them up for success. You incentivize them to work hard, and also encourage them to become investors as they watch their accounts grow.
The pandemic upset many people���s plans. But I���m optimistic about Gen Z and Generation Alpha���the group that apparently comes after Gen Z. Higher pay is here, and hopefully a smaller student-debt burden is on its way.
Today���s teenagers have it better. Don���t take my word for it: The latest wage growth tracker, courtesy of the Atlanta Federal Reserve, shows hourly earnings for the age 16-to-24 group are up a whopping 9.5% from August a year ago. That���s the fastest clip since 2001.
All the chatter about raising the minimum wage to $15 an hour is perhaps having its effect on the private sector. Also contributing to higher pay is the ongoing labor shortage in the service sector. Restaurants, hotels and other manual labor businesses all need more workers.
This may be the best time to be a high school kid hungry for some extra bucks. College students are also licking their chops at an emerging perk���free tuition. Amazon and Walmart recently announced they���ll pay for frontline workers��� college costs. These are very encouraging signs.
Parents can make it even sweeter. Here���s a strategy: For every dollar your child earns, match��it with a Roth IRA contribution. By opening and funding Roth IRAs for your children, you set them up for success. You incentivize them to work hard, and also encourage them to become investors as they watch their accounts grow.
The pandemic upset many people���s plans. But I���m optimistic about Gen Z and Generation Alpha���the group that apparently comes after Gen Z. Higher pay is here, and hopefully a smaller student-debt burden is on its way.
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