Part-time Employment Has Many Benefits

Working has many benefits for teens: earnings can be saved for college or other expenses, employees learn to function under management and within a business setting, students can get an idea of potential careers, and young adults can gain independence and maturity.

Why It Matters

Employers rely on their employees.
A job commitment requires your student to show up on time, perform tasks as needed and do a good job for the sake of the business and its employees and customers. This experience teaches responsibility and work ethic, and it allows your student to learn from authority figures other than you and school staff.
There are financial benefits.
Earnings from one or more jobs can be saved for future expenses, including training or education after high school. Learning to manage the income and purchases will help your student as more complex financial situations are encountered in the future. In addition, the satisfaction of earning spending money allows your student to develop a sense of independence outside the nuclear family.
Your student learns time management and professional skills.
Increasingly, your student will need to deal with multiple commitments between school, work, sports and organizations, family and other activities. A work schedule will help your student learn to budget time between various commitments. Professional skills such as competency, poise, proper hygiene, work etiquette and effective communication skills are also learned in advance of a professional career.

What Your Student Can Do Now

Explore job possibilities.
The first decision will be whether to pursue a part-time job for a business or to offer a service. If your student decides to work for an employer, a work permit may be required and your student will want to apply and interview for jobs. If your student decides to work on their own by offering a service, your student will need to think about what service to provide, how to find customers, how much to charge and whether they will need equipment or facilities.
Solve problems.
Many ninth graders are not able to drive themselves to work, so your student will need to consider how to get to the job site each day. Perhaps an older family member or friend works for the same employer and can schedule similar shifts to allow carpooling, or perhaps you will need to provide transportation for jobs that are further away. Your student will also need to learn how to resolve conflicts with family commitments like baby-sitting younger siblings and with other activities like participation in a sport or activity.
Make a plan for the earnings.
If your student plans to attend college or a training program after high school, a significant portion of the earnings should be earmarked for that future goal. To help save their earnings, consider opening a 529 college savings account. In Iowa, College Savings Iowa is the state-sponsored 529 plan for Iowa residents that lets you save for education expenses and provides certain tax benefits. Since May 29 is 529 Savings Day, it’s the perfect time to learn more about the benefits of opening a 529 account for your student or making an extra contribution to an already existing one. Register for your chance to win a $1,000 College Savings Iowa account contribution at Iowa529Contest.com. Read more about it from Iowa’s Treasurer of State below. Don’t live in Iowa? Check here for a list of states with 529 plans.

What Your Student Can Do Later

Update a resume.
Your student should create and keep up-to-date a resume detailing any special skills and experiences, as well as all responsibilities, from any job. Your student may also wish to keep a list of employers who may be able to provide a letter of recommendation later on.
Learn from experience.
Each job teaches a worker more than just the daily duties of that job. Working with others, related jobs, office or technical skills, managing deadlines and leadership skills are some of the things that your student may pick up through employment. Your student can learn many things from even a less-than-ideal working environment.
Watch for opportunity.
As your student builds a resume, he or she should be thinking about other jobs they might like to pursue while in school. A simple part-time job might open up new ideas about possible future careers or give your student an idea of whether a particular job is actually appealing to do every day, which may provide the incentive to pursue education and training after high school.

What You Can Do

Encourage your student to work, within reasonable limits.
Explain why you think it’s important for your student to have a job. If a particular job will require more hours than your student can reasonably work or is otherwise unmanageable, be clear about the limits that should be considered.
Be a resource.
Your student may need help creating a business plan, thinking of jobs, locating openings, completing applications, preparing for interviews or arranging transportation. Conduct a mock interview with your student to help ease anxiety and help your student understand what expectations employers have for their staff. Create scenarios your student might encounter while working, such as a dissatisfied customer, and discuss possible solutions for handling them.

College Savings Iowa Celebrates 529 Day with a $1,000 Giveaway

529 Day, nationally recognized each year on May 29, is a day where 529 plans around the country come together to bring awareness about the benefits and tax incentives families receive when saving for future education expenses with a 529 plan. As administrator of College Savings Iowa, one of Iowa’s 529 plans, I am proud to celebrate by giving away a $1,000 College Savings Iowa account contribution to help an Iowa family start or boost a 529 education savings account. All residents of Iowa with a child or grandchild under 18 years old are eligible. Visit Iowa529Contest.com by May 31, 2024, to register.

As a subscriber to ISL Education Lending’s SP³ —Student Planning Pointers for Parents, you probably have an eighth- to 12^th-grade student who is planning their post-secondary education move. College Savings Iowa can help you plan for those expenses, and when it comes time to use those funds, the sky is the limit! Savings can be used to pay for a variety of education-related expenses, such as tuition, housing and meals, books and supplies, and transportation. Plus, your student can attend any eligible education institution in the U.S. or abroad, including colleges, universities, trade schools, apprenticeship programs and more.

When you save with College Savings Iowa, there are benefits for you, too! Earnings are federally tax-deferred and Iowa state tax-free. Additionally, Iowa taxpayers can take the state income tax deduction of up to $4,028 in contributions per Beneficiary account in 2024.

With great tax incentives and an abundance of eligible uses, it’s easy to understand how over $5 billion has been used to pay for educational expenses. Additionally, current savers have more than $6 billion in assets waiting to be used for their student’s next adventure! To see everything the Plan has to offer, visit CollegeSavingsIowa.com or contact us at (888) 672-9116. Happy saving!

Roby Smith
Iowa State Treasurer

For additional details about College Savings Iowa, read the Program Description.

About the Author: Roby Smith is the State Treasurer of Iowa and administrator of the College Savings Iowa 529 education savings plan. He serves as the State’s banker, coordinates bonding and invests Iowa’s money. Treasurer Smith is also the administrator of Iowa’s unclaimed property and Iowa’s ABLE plan for individuals with disabilities. To learn more about the Treasurer, visit IowaTreasurer.gov.

Next Steps

Be sure to complete the survey questions at the end of this article to be entered into the 529 deposit giveaway!

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