Don't Break the Bank: A Student's Guide to Managing Money (9 page)

Quiz: What Type of Home-Based Job Would Be the Best Fit?

Watch Out for Work-at-Home Scams!

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Note:
you may need to set up a PayPal account in order to get paid, as some online companies send payment via PayPal.

      
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There are lots of legitimate ways to earn money from home. Unfortunately, there are also lots of scams and crooks who just want to rip you off or get your money. Watch out for places that want to charge you money for “leads” or sell you a directory of companies that use home workers. Never give out your credit card number (or your parents’ credit card number).

Sneak Peek: Get Money for Gaming

If you like playing video games, you may have found yourself wishing you could find a way to do it for a living. Well, there may soon be a way for you to make some cash as a gamer. As of this writing, Blizzard Entertainment was preparing for the launch of its online video game called Diablo 3. One unique aspect of this game is that it will offer an auction marketplace where people can earn virtual items that they can then sell for real money.

Crossword: Working World

Chapter 3

Part-Time Jobs and Other Ways to Make Money

Before you can worry about being smart with your money, you have to get some money in the first place. Aside from an allowance, the main way to get money is to work for it. (Unless, of course, you were lucky enough to get an inheritance from a rich relative—or become a reality TV star—but that’s not very likely.) Yes, we know that working isn’t usually a lot of fun, but you do have a lot of different options, so you might be able to find a job that you don’t mind so much—or maybe one you even really enjoy.

Definition

An allowance is an amount of money that someone (usually a parent) provides on a regular basis as spending money.

Getting a job as a teenager can have many benefits. Yes, of course, you’re earning money—which is always nice. You also learn how to budget, because you will quickly realize that you have to figure out ways to stretch that paycheck as far as you can. You will start to become more “financially savvy,” because you will become familiar with things like taxes, withholdings, etc. If you don’t know much about these kinds of things, your first job (and your first paycheck) will basically be like a crash course in Accounting 101.

Of course, having a job can have other benefits that don’t involve money. You learn how to be responsible and dependable and all of those traits that will be very important to you as an adult. Also, you will probably develop some skills that will help you both in school and a career—things like how to communicate with people, how to manage your time, and how to stay calm in stressful situations.

Gigs and Occasional Work vs. Official Jobs

The work options available to you will usually fall into one of two types. There’s the type that often consists of “gigs” or occasional work—things like babysitting, mowing lawns, and even an actual “gig” (or show) if you happen to play in a band.

Then there is the more formal type of job, such as at a store or restaurant, where you have a regular schedule and usually work a certain number of hours per week.

There are important differences between the two. With the occasional/gig type of work, you are often paid cash and aren’t on an official payroll (this is why this type of work is often referred to as “off the books”). You usually don’t have any deductions (money) taken out for taxes or other expenses. From a budget standpoint, a bad thing is that you often don’t know when (or if) you will work, so there’s no way to predict how much money you will earn, which can make it hard to figure out how you will pay your expenses or buy the things you want.

With a formal (“real”) job, on the other hand, you are an official employee on the payroll. You will probably have taxes and possibly other deductions (think of these as “random penalties”) taken out of your paycheck. While this can be a bummer, it gets you familiar with a system that will affect your paycheck as an adult. You are also more likely to have to deal with official job-related stuff, like an interview process, job application, tax paperwork, and other boring details.

On the plus side, as an official employee, you are entitled to more protections and other safeguards thanks to Uncle Sam and all of his rules that tell companies how they can and cannot treat employees. Also, formal jobs are more likely to look good on your resume down the line.

Also, if you’re on the payroll with a formal job, in most cases, you must earn at least minimum wage. (There are exceptions, such as if you work as a waiter/waitress or another job where you receive tips.) The current federal minimum wage is $7.25 per hour, but some states have their own minimum wage that is higher than that—and that trumps the federal minimum wage. For example, in Oregon, the minimum wage is $8.50 an hour.

“If your expenses are greater than your spending money, you have two choices: cut expenses or get a job.”

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Kristl Story, TheBudgetDiet.com

How to Find a Job

Okay, so you already know you want a job. Now how do you find one? That can sometimes be the hard part, especially if you live in an area where there aren’t a lot of stores or businesses. You may need to do some legwork and spend time asking around and spreading the word, telling everyone you know that you’re looking for leads on part-time jobs.

Classified Ads

Traditionally, this was where your parents always went to look for a job. But times have changed, and the “Help Wanted” sections of most papers are pretty skimpy these days—and in fact, newspapers in general have gotten pretty thin. It’s still worth skimming them, especially the local town newspapers, because occasionally, you will find an ad seeking a babysitter or help with lawn work.

Bulletin Boards

Like classified ads, bulletin boards may not be as common or helpful as they once were, but they are still worth checking out. Your odds of success can improve greatly depending on the location of the bulletin board. If you live in a private development or gated community, for example, there may be a clubhouse or community center where people will often post notices seeking babysitters. Likewise, if your school has a bulletin board, you may spot notices of people seeking tutors.

You Can Find Anything on Craig’s List (for Better or for Worse)

This is one of those good news/bad news things. The good news is that there are lots of local postings on these sites, especially if you live in a major area with its own section on the site. The bad news is that these sites are notoriously packed with scams and shady characters. You really need to use extreme caution when considering replying to any of these ads. Be very careful about revealing your personal information—and never agree to meet someone alone. (This might be one area to get your parents involved.)

Help from a Monster (and Other Job Sites)

With classified sections nearly extinct, adults now find many of their jobs through online career sites like Monster.com, career sections of company Web sites, and social networking. For teens, the first two are still worth checking out, but depending on the type of job you’re seeking, you may be wasting your time. (You aren’t likely to find many “official” job listings for babysitters, for example.) If you’re out of high school or soon will be, you’re more likely to find jobs that you may be qualified for (or interested in).